Gold ends higher on European bailout news
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E-mail Xinhua, June 12, 2012
Gold futures on the COMEX division of the New York Mercantile Exchange ended higher Monday on news of a bailout for Spanish banks, but stayed below 1,600 U.S. dollars an ounce as uncertainty in Spain and the euro zone remained.
The most active gold contract for August delivery gained 5.4 U. S. dollars, or 0.3 percent, to settle at 1,596.8 dollars per ounce.
Gold traded in both positive and negative territory throughout the session but staged a late rally to close just short of the 1, 600 dollar an ounce level. Stopping short of the mark indicated that traders still seemed hesitant to push gold back to the highs from last week, when their dashed hopes for quantitative easing policies reversed the metal's course.
Gold started to gain following increasing worries about financial difficulties in Spain.
Over the weekend, the Spanish treasury said it would seek a 100- billion-euro bailout from the European Union in order to deal with the country's beleaguered banking system.
However, the statement did not settle all of traders'concerns for Spain, and the lingering uncertainty caused the U.S. equities markets and crude oil to fall on the day.
Meanwhile, gold took some momentum from the Spanish worries, as the precious metal is traditionally viewed as a safe haven asset in times of economic duress.
Silver for July delivery rose 14.5 cents, or 0.51 percent, to close at 28.616 dollars per ounce.
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