The price of gold rose for a second straight day as the concerns about the European debt crisis that had subsided for a brief period returned in dramatic fashion, Bloomberg reported.
A spokesman for German Chancellor Angela Merkel said that the European leaders were not looking for a quick solution to the debt crisis, and this timid approach pushed the precious metals market higher, the news source reported.
“Too much uncertainty remains in the market with questions over issues such as guarantees of European sovereign debt, a Greek default and debt sustainability,” Edel Tully, a London-based analyst at UBS AG, told Bloomberg.
According to the news outlet, the metal stands to gain more from the lack of action by European leaders, along with the existing risk sentiment for the state of the American economy. Bayram Dincer, an analyst with LGT Capital Management, noted that gold’s safe haven status has been reaffirmed by the recent events.
CNN reported that the price of gold rose $3.00 to $1,686.00, marking an increase of 0.18 percent for the commodity.