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Gold Slips Over Reduced Safe Haven Appeal
Sep 15,2011 09:21CST
industry news
Source:SMM
Gold futures on the COMEX Division of the New York Mercantile Exchange ended slightly lower on Wednesday.

CHICAGO, Sept. 15 (Xinhua) -- Gold futures on the COMEX Division of the New York Mercantile Exchange ended slightly lower on Wednesday, as hopes for progress on Europe's debt troubles eroded gold's appeal as a safe-haven asset, the stronger dollar also weighed on the gold price.

The most active gold contract for Dec. delivery trimmed 3.6 dollars, or 0.2 percent, to 1,826.5 dollars per ounce.

Although Moody's Investors Service downgraded two of France's biggest banks and placed a third on review, market analysts noted that the highly-expected move failed to spur renewed demand for gold as a safe-haven.

A trader mentioned that market players have showed some cautious optimism on the Euro zone debt issue, after news showed that German, French and Greek leaders were planning to take steps to curb Europe's debt trouble.

"News from the European Union continues to reflect the fragility in the region. Greece continues to be at the center of the storm as the regions'Financial Ministers are lending moral support but continue to state that there is NO PLAN "B" for Greece,"said Mike Daly, a gold specialist with PFGbest here in Chicago.

Daly noted that the fragility is affecting the Euro and lending slight strength to the greenback, which is slowing Gold's momentum recently.

Silver for Dec. delivery pared 66 cents, or 1.6 percent, to 40. 533 dollars per ounce. Platinum for Oct. delivery added 2.4 dollars, or 0.1 percent, to 1,815.9 dollars per ounce.

 

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