Gold and silver advanced, amidst signs about a worsening European Debt Crisis and a slowing global economy. Gold futures increased by 0.10 percent to USD $ 1497.30 an ounce, while silver futures increased by 1.38 percent to USD $ 35.58 an ounce.
Officials of the European Central Bank ruled out the possibility of restructuring Greece’s debt, clashing with political leaders over the effective solution for solving Greece’s problems. EU finance ministers have forwarded the idea of extending Greece’s debt-repayment schedule. With a possible stalemate over Greece’s issue visible n the horizon, there has been an increased trading in buying gold bullion, increasing its price.
There were also indications of a slow global economy growth which helped fuel the price of gold. Japan’s economy has shrunk by more than predicted in the first quarter of this year. Also, Malaysia’s economy unexpectedly slowed down in the lat quarter after a decline in the services and manufacturing sector. Furthermore, the Dollar Index declined by 0.1 percent. Gold prices move in opposite direction to the movement of the US Dollar.
With the global economy showing no visible signs of putting forward a strong showing, gold is expected to rise in the coming days.