Gold futures Rise $27 An Ounce To Record Highs In Three Months (GLD, GDXJ, FCX, EGO)
Gold futures rose close to $1,100 today, marking the highest rise in three months, as investors speculated about a probable rise in demand for the metal due to concerns over the sovereign debt in Greece, despite Eurozone leaders trying to formulate a support plan.
April gold rose $27, or 2.5%, to settle at $1,117 an ounce at 9:10 a.m. on the Comex division of the New York Mercantile Exchange (NYMEX). The precious metal moved higher even though the US dollar remained strong for most part of the day, before pulling back slightly. This is in contrast to the general movement of gold and the US dollar, which tend to move in the opposing direction. However, with safe haven buying returning on lingering concerns over sovereign debt issues at Greece, the metal seems to have gotten rid of the influence of the dollar, according to Bill O'Neill, a principal with Logic Advisors.
Dennis Gartman, a Suffolk, Virginia-based economist and hedge-fund manager said in his Gartman Letter today that the investor community across the world has become wary of “currencies generally and are wrapping its collective arms around gold as the most readily available, reservable and believable currency.”
Among the several gold ETF, SPDR Gold Shares (NYSE: GLD) moved up 2.28% and Market Vectors Junior Gold Miners (NYSE: GDXJ) ETF gained 2.02% in pre-market trading. Meanwhile, Freeport-McMoRan Copper & Gold Inc (NYSE: FCX) rose 3.11% and Eldorado Gold Corp (NYSE: EGO) climbed 3.33% in pre-market trading.
