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The gold price was static in Thursday morning trading, reflecting a wider lack of volatility – the market is awaiting news developments over Greece.
Spot gold was last at $1,174.40/1,175.20 per ounce, down 20 cents on Wednesday’s close and trading in a narrow $4 intraday range so far. The metal is on track for a fifth consecutive day of losses, having started the week nearer $1,200.
Attention is still on Greece, with last-minute crisis talks resuming today in Brussels. Greece now just days away from repayment deadline of 1.6-billion-euros to the IMF; failure to unlock the funds that it needs could result in the country’s exit from the eurozone – the so-called Grexit. This would have serious repercussions for the world’s markets.
“The market still seems very complacent that a deal, even if it is just a short-term fix, will be made. But as deadlines/defaults approach and the impasse remains, the markets may get more jittery again,” FastMarkets analyst William Adams said.
“So for now we favour the upside, especially since gold still does seem to be seeing good underlying support in the $1,160-1,170 area,” he added.
News reports so far suggest that Greece remains defiant on creditor demands for further reforms after its initial proposals earlier in the week were rejected.
Should Greece not have some kind of deal in place by Friday, the chances of the country averting a default will start to look exceedingly slim.
“We think the sidelines are the best option at this stage, as it is impossible to trade based on political negotiations that are fraught with so much uncertainty and have a time-clock ticking in the background,” INTL FCStone’s Ed Meir said.
European bourses have been fairly subdued in – the Euro Stoxx is up marginally at 0.2 percent, the Dax up 0.4 percent and the Cac 40 0.07 percent. Earlier, the Hang Seng and Nikkei both ended in negative territory.
The euro is also holding steady – it was last effectively unchanged at 1.1210 against the dollar.
In data, the GFK German consumer climate was as expected at 10.1. US unemployment claims, personal spending and income, services and the PCE price index are still to come.
In gold-specific news, Russia increased its gold holdings by 4.3 tonnes in May and Kazakhstan by 2.6 tonnes while Turkey cut holdings by 6.5 tonnes, according to the IMF.
Other metals were similarly flat – silver was last down four cents at $15.82/15.87 per ounce, platinum was up $3 at $1,074/1,079 and palladium edged $1 higher to $692/697.
(Editing by Mark Shaw)
- See more at: http://www.bulliondesk.com/gold-new...tinue-to-dominate-96817/#sthash.Turo6P5N.dpuf
Spot gold was last at $1,174.40/1,175.20 per ounce, down 20 cents on Wednesday’s close and trading in a narrow $4 intraday range so far. The metal is on track for a fifth consecutive day of losses, having started the week nearer $1,200.
Attention is still on Greece, with last-minute crisis talks resuming today in Brussels. Greece now just days away from repayment deadline of 1.6-billion-euros to the IMF; failure to unlock the funds that it needs could result in the country’s exit from the eurozone – the so-called Grexit. This would have serious repercussions for the world’s markets.
“The market still seems very complacent that a deal, even if it is just a short-term fix, will be made. But as deadlines/defaults approach and the impasse remains, the markets may get more jittery again,” FastMarkets analyst William Adams said.
“So for now we favour the upside, especially since gold still does seem to be seeing good underlying support in the $1,160-1,170 area,” he added.
News reports so far suggest that Greece remains defiant on creditor demands for further reforms after its initial proposals earlier in the week were rejected.
Should Greece not have some kind of deal in place by Friday, the chances of the country averting a default will start to look exceedingly slim.
“We think the sidelines are the best option at this stage, as it is impossible to trade based on political negotiations that are fraught with so much uncertainty and have a time-clock ticking in the background,” INTL FCStone’s Ed Meir said.
European bourses have been fairly subdued in – the Euro Stoxx is up marginally at 0.2 percent, the Dax up 0.4 percent and the Cac 40 0.07 percent. Earlier, the Hang Seng and Nikkei both ended in negative territory.
The euro is also holding steady – it was last effectively unchanged at 1.1210 against the dollar.
In data, the GFK German consumer climate was as expected at 10.1. US unemployment claims, personal spending and income, services and the PCE price index are still to come.
In gold-specific news, Russia increased its gold holdings by 4.3 tonnes in May and Kazakhstan by 2.6 tonnes while Turkey cut holdings by 6.5 tonnes, according to the IMF.
Other metals were similarly flat – silver was last down four cents at $15.82/15.87 per ounce, platinum was up $3 at $1,074/1,079 and palladium edged $1 higher to $692/697.
(Editing by Mark Shaw)
- See more at: http://www.bulliondesk.com/gold-new...tinue-to-dominate-96817/#sthash.Turo6P5N.dpuf
