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Gold Recoups 1,800 Dollars on Italy Downgrading
Sep 21,2011 09:10CST
industry news
Source:SMM
Gold futures on the COMEX Division of the New York Mercantile bounced off weakness on Tuesday.

CHICAGO, Sept. 20 (Xinhua) -- Gold futures on the COMEX Division of the New York Mercantile bounced off weakness on Tuesday, recouping the 1,800-dollar-per-ounce mark, as Italy's downgrading helped spur demands for gold as a safe-haven investment.

The most active gold contract for December delivery advanced 30. 2 U.S. dollars, or 1.7 percent, to 1,809.1 dollars per ounce.

Market analysts said more funds are seeking safety as Europe's sovereign-debt crisis continues. Standard & Poor's on Monday cut Italy's long-term credit rating to A from A+ and the short-term rating to A-1 from A-1+, citing a weak economic outlook and prospects for ongoing political gridlock.

Meanwhile, investors were also expecting some announcement of economic stimulus on Wednesday, as the Fed begins its two-day policy meeting on Tuesday, adding to the bullish sentiment on gold market.

A trader said as long as governments cower from their responsibilities to balance their budgets and continue to print money instead of paying their bills, gold will likely appreciate in paper money terms and the long-term bullish story for gold remains intact.

Meanwhile, silver for December delivery hiked 97.4 U.S. cents, or 2.5 percent, to 40.137 dollars per ounce. Platinum for October delivery also gained 9.9 dollars, or 0.56 percent, to 1,781.9 dollars per ounce.

 

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