Gold Prices Rise as Europe Announces Plans to Ease Debt Crisis

October 07 00:00 2011

NEW YORK, October 7 ( – Gold cleared the $1650 mark of the December delivery, which is a good sign for momentum traders. Other commodities also experienced gains as European Central Bank and European Commission announced strategies to ease up European crisis.

New York Mercantile Exchange witnessed a jump in Gold for December delivery prices by $11.6 and closed at $1653.20 an ounce. They were still down from their lifetime high of $1920, which was triggered early September. The daily high and low were booked as $1656.80 and $1633.20 an ounce. Even Silver showed a positive trend, rose by $1.65, and closed at $32 an ounce.

Rally in Gold and other commodities were the result of news from European Central Bank to inject regional banks with liquidity and fresh efforts are being made by European Officials to avoid Europe from going into crisis. Moreover, news from US reporting 60,000 job creation and unemployment level remaining at 9.1% level in September added to rather slow stability in the market.

In a note, Commerzbank said, “Gold’s unusual behavior at present can be explained by events on the futures market,” and “This pattern is likely to mean the price of gold fluctuating for quite some time within a broad sideways range before a new upturn begins,”