Gold Enjoys Eurozone 'Haven' Boost on the Commodities Market

London, London United Kingdom (PressExposure) November 07, 2011 -- Spread betting provider City Index (http://www.cityindex.co.uk/) takes a look at the financial activity shaping the markets on 7th November 2011.

Gold prices rose today (November 7th) as traders turned to the commodities market as a means of protecting their wealth against the current concerns.

The eurozone reached a new level of chaos after Italy's sovereign debt crisis hit the headlines with borrowing costs up in the region.

With many calling for Burlesconi to resign, uncertainty continues to reign in Europe, despite further news regarding Greece's position.

Prime minister George Papandreou earlier agreed to step down in a move expected to boost the markets. But with Italian borrowing reaching a euro-era record, equities continued to fall leading to a boost in gold trading.

Gold 100 oz futures was trading up 0.67 per cent at $1,767.80 a troy ounce as of 11:18 BST, as traders looked to the traditional safe haven of the commodities markets.

Speaking to Bloomberg, LGY Capital Management analyst Bayram Dincer said: "Gold is responding to the general market mood that the European crisis will develop much worse before it gets better."

"At the moment we do not have a foreseeable lasting solution and high uncertainty remains," he added.

See the City Index Economic Calendar for more information on the latest market moving events.

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Press Release Submitted On: November 07, 2011 at 11:00 am
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