Gold sharply rises amid eurozone concerns
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E-mail Xinhua, June 26, 2012
Gold futures on the COMEX division of the New York Mercantile Exchange regained momentum on Monday, as renewed worries about the financial situation in Europe drove traders to the safe-haven asset.
The most active gold contract for August delivery sharply rose 21.5 U.S. dollars, or 1.37 percent, to settle at 1,588.4 dollars per ounce.
After losing 3.8 percent in trading of the previous week, gold was able to recover some of its losses on Monday, but still closed below the crucial 1,600-dollar mark.
The precious metal saw renewed safe-haven interest amid disappointing news from Europe, where European Union (EU) leaders are scheduled to meet on Thursday for a policy summit.
Monday saw Cyprus become the fifth EU country to seek a bailout, as well as the Spanish government's formal request for 100 billion euros in EU funds for the country's ailing banking sector.
Investors seemed skeptical that any substantial progress would come from the EU summit, and the eurozone negativity sent the U.S. stock market and crude oil price down sharply.
Gold rallied on safe-haven interest even with the negative force of a higher U.S. dollar, which typically pressures commodities as it makes them more expensive to holders of other currencies.
Meanwhile, gold's cheaper price after last week's sharp decline lured back investors on Monday, outweighing the stronger greenback.
Silver for July delivery also sharply rose 85.9 cents, or 3.22 percent, to close at 27.520 dollars per ounce.
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