Gold Steady at $1,075/oz as Euro Momentum Kept

Source: Reuters  (2/10/10)

"The euro extended gains on Wednesday. . .as investors unwound short positions in the single currency"


Gold prices steadied around $1,075 per ounce on Wednesday after a rally the previous day of over 1% on economic optimism as the euro rose on reports of a possible European bailout for debt-stricken Greece.

Spot gold was at $1,077.60 per ounce as of 0001 GMT, up 0.1% from New York's notional close of $1,076.95, but off Tuesday's high of $1,083.05.

European governments have agreed in principle to help heavily indebted Greece, a senior German coalition source said on Tuesday, in what would be the first rescue of a euro zone member in the currency's 11-year history.

U.S. gold futures for April delivery edged up 0.1% to $1,078.60 per ounce. On Tuesday the contract settled up $11 at $1,077.20 an ounce on the COMEX division of the New York Mercantile Exchange.

The world's largest gold-backed exchange-traded fund, SPDR Gold Trust, said its holdings were at 1,106.378 tons as of Feb. 9, unchanged for the second straight day. The holdings hit a record high of 1,134.03 tons on June 1.

The euro extended gains on Wednesday, having earned a reprieve in the previous session, as investors unwound short positions in the single currency on reports that a rescue package for Greece was in the works.

Related Articles

The Gold Report The Gold Report