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Gold Further Hikes after Greece Approves Austerity Plan
Jul 1,2011 10:00CST
industry news
Source:SMM

BEIJING, July 1 -- Gold futures on the COMEX Division of the New York Mercantile Exchange extended rally on Wednesday, as Greek approval of austerity measures could boost the euro against the U.S. dollar, which is helpful in supporting gold price.

The most active gold contract for August delivery hiked 10.2 U. S. dollars, or 0.68 percent, to 1510.4 dollars per ounce.

Market analysts said that the Greece's approval put pressure on the U.S. dollar while benefiting the commodities in general and gold. It added an extra support as many investors seek gold as a physical currency against the paper currency dollar.

The Greek parliament approved a package of additional austerity measures and asset sales in a bid to avert a potentially devastating default, even as thousands of protesters clashed with police in Athens.

As a result, the dollar index, which measures the performance of the U.S. unit against a basket of six currencies, fell to 74.672 from Tuesday's 75.063.

Gold price has enjoyed a second rise after falling below 1,500 dollars on Monday.

Silver for September delivery hiked 1.117 U.S. dollars, or 3.3 percent, to 34.769 dollars per ounce. Platinum for October delivery gained 33.1 dollars, or two percent, to 1726.6 dollars per ounce.
 

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