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Gold Prices Rise Slightly Following Spanish Rescue Efforts

By Henry Brier,  June 11, 2012, 08:52:49 AM EDT

The price of gold was mildly climbing in market trading on Monday, according to published reports.

Precious metals silver , platinum and palladium demonstrated a healthier performance than the yellowish metal, The Wall Street Journal reports . Gold resumed driving toward the milestone price of $1,600 per troy ounce.

Underwhelming economic data will continue pushing up the price of bullion, according to a client note penned by Goldman Sachs, cited by The Journal.

"We expect gold prices to climb as subdued U.S. growth reduces the market's expectations of real rates," the note states.

At 11:02 a.m. on Monday, gold futures were down 0.33 percent, a $5.30 drop to $1,586.10 per troy ounce.

Benefiting gold futures early during Monday trading was the aftermath of Spain requesting aid for its hobbled banking sector over the weekend. Ministers of the 17-bloc region agreed to lend the nation hosting the euro zone's fourth-largest economy 100 billion euros, which is equivalent to roughly $125 billion.

Independent audits are forecast to determine how much the weakened Spanish banking sector is needing in about one week, Reuters reports officials in Madrid said.

The nation is the next in line for the voracious appetite of the euro debt crisis that has seen Ireland, Portugal and, on two occasions since June 2010, Greece solicit and receive bailout aid. Greece is driving toward a second round of elections next weekend after the first shot in early May did not produce a victor.

Gains for platinum were up 1.92 percent, palladium 1.81 percent and silver 0.61 percent, The Journal reports, noting another investment house predicts an uplifting atmosphere on financial markets will continue benefiting the yellowish metal's counterparts.

"Silver, platinum and palladium are profiting even more than gold from the general brightening of sentiment on the financial markets," states a client note authored by Commerzbank. "That said, those precious metals with a high industrial use had also seen much heavier losses in recent months."

The sovereign debt crisis has been attacking euro zone nation banks, markets and public finance systems for the past 30 months. But the euro debt scourge also is partially responsible for pushing bullion ot its record price of $1,923.70 per troy ounce, which was established in early September of last year.

The yellowish metal is in the midst of driving toward a 12th consecutive year of annual gains.




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.


This article appears in: News Headlines, Commodities

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