Gold Futures Rise Amid Inflation Concerns and Greek Debt Woes

Strategic Insights -

Gold futures saw a slight gain on Tuesday, with investors buying the metal as an inflation hedge and safe haven, while fresh worries about Greek finances also boosted the U.S. dollar. The June gold contract rose $2.20, or 0.2%, to settle at $1,136 an ounce, while the nearby April contract rose $2.20, or 0.2%, to $1,135.10 on the Comex division of the New York Mercantile Exchange. Experts attributed the rise in gold prices to concerns about future inflation, with Charles Nedoss, senior market strategist with Olympus Futures, stating that it's more an inflation trade, with people trying to get ahead of the curve.

Key Takeaways:

  • Gold futures saw a slight gain on Tuesday, with the June contract rising $2.20, or 0.2%, to settle at $1,136 an ounce.
  • Investors bought gold as an inflation hedge and safe haven, while fresh worries about Greek finances also boosted the U.S. dollar.
  • Charles Nedoss, senior market strategist with Olympus Futures, attributed the rise in gold prices to concerns about future inflation.
  • The nearby April gold contract rose $2.20, or 0.2%, to $1,135.10 on the Comex division of the New York Mercantile Exchange.
  • Michael Gross, broker and futures analyst with OptionSellers.com, stated that the Greece story kind of threw some cold water on the other markets, pressuring silver.
  • Silver is more widely used for industrial purposes than gold and can track industrial commodities like copper.
  • Platinum and palladium futures settled near steady, with Nymex July platinum falling $5.30, or 0.3%, to settle at $1,704.50 an ounce.
  • Bargain hunting lifted platinum from a dip to the $1,680 area, but profit-taking kicked in above the $1,700 level.

Statistics:

  • Gold futures rose $2.20, or 0.2%, to settle at $1,136 an ounce in the June contract.
  • The nearby April gold contract rose $2.20, or 0.2%, to $1,135.10 on the Comex division of the New York Mercantile Exchange.
  • The ICE Futures U.S. Dollar Index rose 0.6% to 81.541 points.
  • Comex May silver dropped 18.7 cents, or 1%, to settle at $17.931 an ounce.
  • Nymex July platinum fell $5.30, or 0.3%, to settle at $1,704.50 an ounce.

Sources:

  • Dow Jones Commodities News via Comtex
  • Olympus Futures
  • OptionSellers.com
  • ICE Futures U.S. Dollar Index
  • Nymex
  • Dow Jones Newswires