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
Certainly, gold producers still continue to gain from investors
seeking alternative assets to place their money. AngloGold Ashanti
) is on the rise Monday, as it Harmony Gold Mining Co. (
) 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 (
) and BHP Billiton Ltd (
) are using inefficient and unsustainable pricing systems that lack
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