Wednesday, 26 May 2010

Gold Prices Rally as Concerns over Global Economic Stability Persist

The ERU gained some ground in today's early trading as a rally in European and Asian equity markets has lifted market sentiment and pushed the EUR slightly higher. However, continued global tension in Europe and the Korean peninsula kip a lid or risk taking and supporting the USD and JPY.

The EUR rose to $1.2333 Wednesday from $1.2328 late Tuesday in New York, after falling earlier as far as $1.2262. The EUR also rebounded to ¥111.27 from ¥110.98 while the USD rose to ¥90.32 from ¥90.05. The Pound ticked up slightly to $1.4412 from $1.4394.

Gold prices rallied above $1,200 a troy ounce, to currently trade at $1,214, as concerns over the Euro-Zone's debt problems drove investors to the commodity as an alternative investment.

Crude-Oil futures also rose today; with light, sweet crude futures for July delivery traded at $69.58 a barrel On the New York Mercantile Exchange. Spot Crude at the moment is nearing the $71 a barrel level.