Gold steadies amid escalating eurozone debt worries

07:27, May 18, 2010      

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Gold futures on the COMEX Division of the New York Mercantile Exchange edged up 30 cents on Monday, as the demand for an alternative to the weakening euro kept gold firm. Silver and platinum both fell.

The most active gold contract for June delivery rose 0.3 U.S. dollars, to finish at 1,228.1 dollars per ounce.

As the nearly-1-trillion-U.S-dollar bailout plan failed to assuage concerns that the required austerity measures to cut deficit and debt will stifle the economic growth of fiscally weaker eurozone nations like Greece, Spain and Portugal, and in turn disrupt the global economic recovery, investors continued to flock to gold and the U.S. dollar on Monday for the purpose of safe-haven, and pushed stocks to slide in early trading.

The euro, which is used by 16 countries in Europe, plunged to a four-year low, and boosted the demand of gold as an alternative asset.

The spike in dollar hit the oil price and dragged it to below 70 dollars per barrel. The surging U.S. dollar and plunging oil price have kept a lid on gold price and made it give back most of its earlier gains.

July silver dropped 36.6 cents to settle at 18.859 dollars per ounce. July platinum was down 52.2 dollars, to close at 1,663.2 dollars an ounce.

Source: Xinhua


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