Gold Gains on Rising Spanish and Italian Bond Yields

Data Analysis 09:55:03AM Jun 13, 2012 Source:SMM

CHICAGO, June 12 (Xinhua) -- Gold futures on the COMEX division of the New York Mercantile Exchange rose Tuesday, as rising Spanish and Italian bond yields sparked traders' hopes for another round of quantitative easing.

The most active gold contract for August delivery gained 17 U.S. dollars, or 1.06 percent, to settle at 1,613.8 dollars per ounce.

Gold extended its winning streak to three days on Tuesday and notched a close above the significant 1,600 dollar an ounce level.

Trading on Wall Street was dominated by a sharp increase in Spanish ten-year bond yields, which ended the day at 6.74 percent. According to the database Tradeweb, that was a record high close for Spanish bonds.

Italian bonds also saw a rise in yields thanks to economic uncertainty in Europe, which arose anew following the weekend report of a 100-billion-euro bailout for Spain from the European Union. Traders seem to have a gloomy outlook for the Spanish market, with the financial climate in Europe likewise concerning investors.

Gold was able to take some momentum from the European worries due to its safe haven appeal, and also because the difficulties might move the European Central Bank to stimulate the economy through more quantitative easing policies.

Traders in the U.S. had similar ideas for the U.S. Federal Reserve Bank, after Chicago Fed President Charles Evans commented that he would support more economic stimulus. Traders moved on the renewed hopes for quantitative easing policies, sending both gold and the U.S. stock market up moderately.

Silver for July delivery gained 33.3 cents, or 1.16 percent, to settle at 28.949 dollars per ounce.
 

Key Words:  Gold futures  COMEX division  

Gold Gains on Rising Spanish and Italian Bond Yields

Data Analysis 09:55:03AM Jun 13, 2012 Source:SMM

CHICAGO, June 12 (Xinhua) -- Gold futures on the COMEX division of the New York Mercantile Exchange rose Tuesday, as rising Spanish and Italian bond yields sparked traders' hopes for another round of quantitative easing.

The most active gold contract for August delivery gained 17 U.S. dollars, or 1.06 percent, to settle at 1,613.8 dollars per ounce.

Gold extended its winning streak to three days on Tuesday and notched a close above the significant 1,600 dollar an ounce level.

Trading on Wall Street was dominated by a sharp increase in Spanish ten-year bond yields, which ended the day at 6.74 percent. According to the database Tradeweb, that was a record high close for Spanish bonds.

Italian bonds also saw a rise in yields thanks to economic uncertainty in Europe, which arose anew following the weekend report of a 100-billion-euro bailout for Spain from the European Union. Traders seem to have a gloomy outlook for the Spanish market, with the financial climate in Europe likewise concerning investors.

Gold was able to take some momentum from the European worries due to its safe haven appeal, and also because the difficulties might move the European Central Bank to stimulate the economy through more quantitative easing policies.

Traders in the U.S. had similar ideas for the U.S. Federal Reserve Bank, after Chicago Fed President Charles Evans commented that he would support more economic stimulus. Traders moved on the renewed hopes for quantitative easing policies, sending both gold and the U.S. stock market up moderately.

Silver for July delivery gained 33.3 cents, or 1.16 percent, to settle at 28.949 dollars per ounce.
 

Key Words:  Gold futures  COMEX division