, IncMarch 8, 2010 – Gold prices tumbled in early trading today as the euro strengthened over positive news of increasing German industrial output and a possible resolution in the Greek sovereign debt situation. The gold price, which closed at $1,137.73 on the Asian market, was down $11.10 in the US to stand at $1,124.30 per ounce at 12:40 AM EST. The euro was at $1.3628 after a rise of 0.12 percent, while the US Dollar Index is up 0.031 to reach 80.46.
A rally early in the US trading session by the euro may be a direct result of meetings over the weekend in Berlin between Greek Prime Minister George Papandreou and German Chancellor Angela Merkel. While no specific details were announced, French President Nicolas Sarkozy said the euro region is ready to rescue Greece if necessary. “If the Greek situation calms down, people may not be as interested in owning hard assets,” said Matt Zeman, a metals trader at LaSalle Futures Group in Chicago.
News of a rise in German Industrial output was also considered to be factor in the early gains by the euro, as the country posted a 0.6 percent increase. While economists had forecast a 1 percent gain in a Bloomberg survey, the number was still positive as it represented continued growth.
Speaking of today’s drop, James Moore, an analyst for The Bullion Desk said, that gold prices may “benefit from further investor diversification in coming sessions, with dips continuing to be seen as bargain-hunting opportunities. Risk appetite remains steady.”
Ronald Stevens
Senior Staff Writer - GoldPrice.net
