Gold climbs after three-straight sessions of losses
The price of gold gained in value on Wednesday, pushed by demand for the yellowish metal after sharp declines, Bloomberg reports.
One day after losing nearly 2 percent of its value and touching its lowest price in nearly six weeks, bullion was driving higher on Wednesday.
"Gold is likely to benefit from further investment dip buying interest," states a report penned by analyst James Moore with TheBullionDesk.com in London, according to Bloomberg.
At 9:24 a.m. on Wednesday, the price of gold climbed 0.34 percent, a $5.70 lift to $1,677.80 per troy ounce.
The rise of the physical metal may be mirrored by gold mining stocks, especially for companies who hold significant deposits of the respective commodity in resource-rich areas like British Columbia.
Thus far this year, the price of gold has climbed more than 7 percent, according to Bloomberg.
But one analyst noted questions are lingering regarding whether the precious metal will sink.
"With sentiment now on very shaky ground, it's hard to identify where a floor might arise," states a Wednesday report penned by analyst Edel Tully with UBS AG in London, Bloomberg notes. "Gold needs physical demand to step in, and in size, otherwise further downside seems inevitable."
Reuters reports the yellowish metal halted three consecutive days of losses, which was helped by gains for the shared currency of the European Union when held against the world's reserve currency.
"Open interest has fallen dramatically over the last week, indicating that many if not most of the longs that were initiated above $1,700 during the last month have been closed down," vice president Ole Hansen with Saxo Bank told Reuters. "This should help the market to stabilize."
All eyes are following the travails of Greece as the Aegean nation is attempting to stave off defaulting on its loan obligations. As the emblem of the sovereign debt crisis, Greece is tasked with effecting payments by the 20th of this month.
Reuters reports another deadline arrives on Thursday of this week - the nation must secure a pact with private creditors to begin pecking away at the large amount of debt it has compiled.
The record price of gold is $1,923.70 per troy ounce, which was established in early September of last year.
The sovereign debt crisis has proven to be a significant driver of the price of gold as the precious metal aims to achieve a twelfth consecutive year of annual gains this year.