The price of gold got a boost today in trading when the news filtered out that the Eurozone leaders, at their crucial meeting in Brussels, had reached an agreement on adopting more stringent fiscal principles for the Eurozone in a bid to resolve the debt crisis which has been affecting the continent for the past two years.
The euro gained in trading today against the US dollar which helped gold to appreciate in price but some analysts have observed that at 0.7 per cent price gain at which the yellow metal inched up early today, gold investors may be cautiously waiting for further specific decisions of the EU leaders from their crucial meeting still holding in Brussels today.
Some analysts including Andrey Kryuchenkov of the VTB Capital have said that gold may retain its steady price gain until the scheduled press conference billed to be addressed later today by Jose Manuel Barroso, the President of the EU Commission.
Andrey said that there was the need for the EU leaders to convince investors that the EU debt crisis could be brought under control or else all the gains gold had made from its low support price level of $1,600 to its present price of about $1,715 could be lost very quickly while a reassuring message from the EU leaders meeting today could reignite a ‘start buying’ motion among investors who he said are currently waiting on the side-lines.
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