Gold Continues to Inch Up as Euro Worries Persist

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Gold is nudging up in morning trade as traders monitor the latest meeting of euro zone finance ministers in Brussels Monday. Worries that the $1 trillion bailout package for Greece may not be enough to stave off the debt crisis from spreading across Europe led the yellow metal to soar last week as a safe haven.

Profit-taking is seen to keep a lid on gold prices moving forward, at least in the near term, but many analysts expect the upward trend to continue as concerns about the health of the euro zone persist. Certainly, comments by German Chancellor Angela Merkel over the weekend that the aid package to Greece only bought time for the euro zone to deal with its fundamental problems has not done much to bolster confidence.

At 0815 ET, gold is up 0.1% at $1,229.40 an ounce, while silver is 0.4% weaker at $19.14 an ounce, and copper is down 2.2% to $3.05 a pound.

Certainly, gold producers still continue to gain from investors seeking alternative assets to place their money. AngloGold Ashanti Ltd. ( ANG ) is on the rise Monday, as it Harmony Gold Mining Co. ( HMY ) as Asian investors sought out the yellow metal amid fears about the future of the euro zone.

Indeed, CLSA Asia Pacific Markets' chief equity strategist Christopher Wood stated that the euro will be on par with the dollar "sooner or later", adding that gold could reach $3,500 an ounce "when the dollar ceases to become the reserve currency."

Meanwhile, base metals are on the decline as worries that the euro zone's doldrums will put a damper on global economic growth and industrial expansion in general.

As for Australia's Macquarie Group, analysts Jim Lennon and Colin Hamilton stated that iron ore giants Vale SA ( VALE ) and BHP Billiton Ltd ( BHP ) are using inefficient and unsustainable pricing systems that lack clarity.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

Copyright (C) 2014 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.


This article appears in: Investing , Commodities

Referenced Stocks: ANG , BHP , HMY , VALE

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