FU: Gold futures steady near record high on Greece debt woes
Futures Pros – Gold futures were little changed on Monday, hovering close to an all-time high amid mounting speculation Greece would be unable to avoid a sovereign debt default and as concerns over accelerating global inflation boosted gold’s appeal as a preserver of wealth.
On the Comex division of the New York Mercantile Exchange, gold futures for June delivery traded at USD1,484.75 a troy ounce during European morning trade, shedding 0.2%.
Earlier in the day, gold prices climbed to a fresh all-time high of USD1,489.65 a troy ounce, prompting some investors to lock in gains.
Greek daily newspaper Eleftherotypia reported on Monday that Greece told the International Monetary Fund and the European Union earlier this month that it wanted to restructure its debt. The report was subsequently denied by a finance ministry source in Athens.
Meanwhile, this week’s negotiations over Portugal's bailout were thrown into doubt after an anti-euro party in Finland that has vowed to veto its rescue package made strong gains in a parliamentary election on Sunday.
Finland's parliament, unique in the euro zone, has the right to vote on European Union requests for bailout funds.
Ongoing concerns over accelerating global inflation as well as simmering turmoil in North Africa and Middle East were expected to continue to support gold prices.
Official data released Friday showed that China's annual rate of inflation in March rose to a 32-month high of 5.4%. Meanwhile, consumer price inflation in the euro zone increased more-than-expected in March, rising by 2.7%, the highest level since October 2008.
Meanwhile, fighting continued in Libya over the weekend, while anti-government demonstrations escalated in Syria and Yemen.
Gold is often considered a haven against political turmoil or economic downturns in part because it is not as linked to industrial production as other commodities and equities.
Elsewhere, silver for July delivery retreated from a 31-year high, dipping 0.24% to hit USD42.91 a troy ounce, while copper for July delivery added 0.3% to trade at USD4.286 a pound during European morning trade.
