Gold ticks lower with euro worries - Ninemsn
in financial service prestons, financial services
financial planners sydney. Gold futures have slumped for a third session, again tracking the euro lower against the dollar on worries that Europe's debt crisis could be set to worsen because of political gridlock in Greece. Gold has struggled in recent months when euro-zone worries were front and centre, as investors favoured the flexibility of cash at the expense of precious-metals futures. Gold and the US dollar have an added tie, as a stronger dollar makes dollar-denominated gold appear more expensive for buyers using other currencies. Despite recent investor aversion to gold futures, physical demand for the metal has been picking up in come corners, said Marc Ground, an analyst with Standard Bank, in a note.
"Gold futures on Wednesday slumped for the 11th time in 13 trading sessions, ending at a 10-month low as worries about Europe's debt crisis and investor demand for the dollar spurred flight from precious metals. Such concerns have sent investors seeking a safe harbour into the US dollar, pushing the currency higher and pressuring dollar-denominated gold futures by making them appear more expensive for buyers using other currencies."