Gold prices rose on Tuesday as uncertainty in the Eurozone continues to rise. Some investors claim that the sell off that occurred yesterday was overdone and that gold prices will continue the rise that has been occurring for many years.
By Claudia Assis and Virginia Harrison
Sept. 13, 2011, 1:17 p.m. EDT
SAN FRANCISCO (MarketWatch) — Gold futures rose Tuesday as investors wrestled with Europe’s sovereign-debt crisis and the previous session’s steep losses enticed investors back to the metal.
Gold for December delivery GC1Z +1.27% added $18, or 1%, to $1,831.80 an ounce on the Comex division of the New York Mercantile Exchange.
The contract had traded as high as $1,838.90 an ounce and as low as $1,794.80 an ounce.
Gold lost 2.5% on Monday as investors sold out of the metal in order to raise cash on mounting worries about Europe’s debt crisis. Read more on Monday’s gold session.
Some investors “judged the selloff overdone,” said Jeffrey Christian, managing director of CPM Group in New York.
A moderately weaker dollar has helped as well, he added.
Interest in commodities and equities ticked higher late Monday after reports that China was considering buying Italian bonds. Read more about the China-Italy potential deal.
But uncertainties surrounding that possibility quickly dampened enthusiasm, with some officials reportedly saying the talks pertained to potential industrial investments, rather than debt.
Markets were also abuzz with talks, subsequently quashed, of a joint statement from the heads of Germany and France.
German Chancellor Angela Merkel, French President Nicolas Sarkozy and Greek Prime Minister George Papandreou are scheduled to hold a conference call on Wednesday, according to press reports Tuesday. Reports that Merkel and Sarkozy would be issuing a statement or joint paper after the meeting, however, are false, Merkel said, according to Dow Jones Newswires.
Meanwhile, the wider metals complex strengthened Tuesday, led by silver, which posted heavy losses in the previous session.
Silver for December delivery SI1Z +2.53% rose $1.04, or 2.5%, to $41.27 an ounce.
December copper HG1Z +0.37% added 1 cent, or 0.2%, to $3.98 a pound.
Platinum for October delivery PL1V +0.40% turned higher, adding $4, or 0.2%, to $1,813.20 an ounce, while the December contract for sister metal palladium PA1Z +2.75% gained $17.40, or 2.5%, to $728.75 an ounce.
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