Comex Gold, Silver End Firmer on Safe-Haven Investment Demand
(Kitco News) -Comex gold and silver futures prices closed the U.S. day session modestly higher Monday morning. The precious metals were boosted on more safe-haven investment demand as the European Union’s sovereign debt woes continue. However, a stable U.S. dollar index and crude oil prices hitting a fresh six-month low Monday did limit the upside in the precious metals. August gold last traded up $2.20 an ounce at $1,541.30. Spot gold last traded up $0.40 an ounce at $1,541.00. July Comex silver last traded up $0.247 at $35.995 an ounce.
The EU sovereign debt crisis saga wears on, and that’s an underlying bullish factor for the precious metals markets. After weekend meetings between Greek officials, the European Union and the International Monetary Fund, there was no agreement reached on a bailout package regarding Greece’s debt crisis. In fact, those officials are now saying it will be mid-July before any agreement is reached. Meantime, there is a vote of confidence for the Greek president scheduled for Tuesday. The IMF warned Monday that the Greece debt crisis that is presently in focus could spill over into a dangerous European or worldwide debt contagion if not dealt with properly.
The U.S. dollar index traded near steady Monday and was supported on safe-haven buying interest and more short covering as the EU debt crisis plays out. The Euro currency has been under strong selling pressure recently due to the EU debt crisis. While the stronger dollar index has limited the upside in the precious metals, history shows that both the greenback and gold can appreciate during times of keener market anxiety.
http://blogs.forbes.com/kitconews/2011/06/20/comex-gold-silver-end-firmer-on-safe-haven-investment-demand/
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