The price of gold was on the rise on Wednesday, pushing to its top value in one month, according to
The yellowish metal was drawn higher by prospects of European Central Bank officials taking action to confront the sovereign debt crisis' damaging tendencies in the euro zone. Ireland, Portugal and, on two occasions during the past 24 months, Greece have accepted bailout aid as a consequence of damage caused by the voracious appetite of the debt crisis.
Greece is teetering on the edge of membership in the euro as the Aegean nation prepares for its second shot at national elections later this month. The first round in early May did not produce a clear victor as feuding political factions could not reconcile their positions on the deep austerity cuts required for Greece's receipt of international bailout aid.
The country is in danger of defaulting on repayment of financial obligations, which would prove to be a severe disruption to the region.
The banking sector of Spain is facing trouble and earlier this week the nation sought aid for those financial institutions, marking the first time that the nation hosting the euro zone's fourth-largest economy has requested assistance. The country also is working to keep down bond yields of the sort that prompted Ireland, Portugal and Greece to request bailout aid.
But, despite the troubled circumstances of Spain and Greece, Wednesday saw the shared currency of the European Union on the rise, which typically proves to be beneficial to the yellowish metal.
"This morning there is a general commodities run; the whole sector is up by different degrees," analyst Nikos Kavalis with RBS Global Banking & Markets told Reuters. "This to a large extent is linked to the euro doing rather well."
At 9:30 a.m. on Wednesday, gold futures gained 1.3 percent, a $21.10 left to $1,638 per troy ounce.
The yellowish metal continues driving up after achieving its largest one-day rise this past Friday when it gained 4.3 percent. That upward spike marked the biggest climb for bullion in more than 36 months.
The Friday lift was partially linked with underwhelming economic data about U.S. payrolls, which prompted further discussion about economy-spurring measures such as the U.S. Federal Reserve deploying another round of monetary easing.
Monetary easing draws down the value of the U.S. dollar, which proves to be beneficial to the price of gold.
"We are positive on gold, and it is definitely very encouraging that we've gone past the $1,600 milestone," the RBS analyst told Reuters. "It has moved up the whole support level ... (but) to regain traction, we need the professionals to go back in."
gold's gains on Wednesday to the world's reserve currency losing some of its luster of the sort that had proved to be damaging to the yellowish metal earlier this year.
The Dollar Index, a metric that gauges the value of the U.S. dollar against six rival currencies, was sliding, MarketWatch reports.
The recent upward drive for the precious metal comes as it finds itself in its biggest slump in 10 years, according to
During a four-month period leading up to May, gold dropped 10 percent.
High-flying investor George Soros and hedge fund manager John Paulson have been active enthusiasts of the yellowish metal. Soros purchased more during the first three months of this year and Paulson retained the largest interest in the biggest exchange-traded instrument that is supported by the precious metal.
"We will see some easing, and that will push gold higher, but the reality is that we are on hold until the outcome of the Greece elections," John Stephenson with First Asset Investment Management in Toronto told Bloomberg.