Gold Enjoys Rally on Greece Speculation

Gold futures rose to an 11-week high on speculation that Greece will abandon the euro, boosting the precious metal’s appeal as a haven asset. Silver climbed to a one-month high.  Opinion polls showed Greek Prime Minister Antonis Samara hasn’t narrowed the lead by his top opponent from the Syriza party, boosting concerns that a change in political leadership will spur an exit from the euro area. Gold climbed for the third straight session.

“There’s still some real concern about Greece, and that’s some of the wind behind gold’s move up,” Phil Streible, a senior market strategist at RJO Futures in Chicago, said in a telephone interview. “People think the euro zone may be in trouble in the coming weeks, and Greece is just going to be the tip of the iceberg.”

Gold futures for February delivery climbed 0.1 percent to settle at $1,234.40 an ounce at 1:45 p.m. on the Comex in New York. Earlier, the metal reached $1,244.50, the highest for a most-active contract since Oct. 23.

Bloomberg

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