, IncFebruary 11, 2010 – Gold prices rose sharply this morning as the European Union announced that it will take steps to protect its financial welfare. Although the announcement was brief and details are expected to come later, gold prices responded by climbing to $1,093.40 per ounce at midday, up $21.70 on the day and approximately $40 during what has proved to be a strong week of trading.
In a statement released by EU President Herman Van Rompuy, the EU pledged to “take determined and coordinated action if needed to safeguard the euro area as a whole.” As details are made available concerning the specific plans for Greece and the other unstable economies in Italy, Portugal and Spain, investors’ appetites for investment in the euro will likely join the optimism of gold traders and push the currency up as well, a move that would likely impact the dollar in a negative sense.
Arrival of such news has been a strong force on both currencies and commodities such as gold. The US dollar has enjoyed two months of gains which are generally regarded as a statement against the economic predicaments in these countries. During the same time, gold has suffered through a correction and lackluster trading due to many viewing the dollar as the hedge asset of choice.
Gold prices are moving up today with the statement of support by the EU for the economic problems of its member countries. Investors should consider taking new positions as specific details about the recovery plans could spur additional price increases in gold.
Ronald Stevens
Senior Staff Writer - GoldPrice.net
