LONDON (Commodity Online): Indian imports of gold may decline for the first time in three years, because of the high cost of the metal, is disappointing, although they add that China is expected to pick up “some of the slack,” said OptionsXpress in a research note.
According to OptionsXpress, Gold futures have been boosted from a European Union decision that amounts to “kicking the can down the road.”
The EU voted for a second bailout for Greece, giving the beleaguered nation 130 billion euros instead of pushing for a controlled bankruptcy for Greece.
“This is likely especially bullish for gold traders. Not only does the bailout perhaps delay the inevitable (Greek bankruptcy), but it also opens the door for higher inflation across the eurozone,” OptionsXpress added.
So far Tuesday, Comex April gold is up $29.90 from Friday’s close, or 1.7%, to $1,755.80 an ounce.
