Gold Spot Price Open: $1,179
Gold Spot Price Close: $1,187
Change in Gold Spot Price: +$8
Silver Spot Price Open: $16.06
Silver Spot Price Close: $16.09
Change in Silver Spot Price: +$0.03
Precious metals added value for yet another session on Wednesday despite the global marketplace being generally quiet. When all was said and done, gold managed to gain about 8 dollars while silver posted more modest gains of about three cents. Platinum and palladium were both up as well, but neither metal gained more than ten dollars today.
Greece Nearing Crunch Time
For many, it seems as though we have been saying Greece is on its last leg as a member of the European Union for some time now, and we have. Today, that point is reiterated as it was announced that Greece’s creditors have yet to put forth a reply to their latest proposal asking for more stimulus funds in exchange for some economic reforms. This is not really anything new, but as the month of June ticks away, so to do bets that Greece will be able to reach a deal with its creditors before they default on their next batch of loan repayments. After all, their forthcoming payments are going to be even larger as last Friday’s near $325 million payment to the IMF was omitted and is going to be tacked on to another payment expected to come due later in the month. At this point, it really seems as though Greece is not going to reach a deal before their creditors come knocking for their money.
For gold and silver, the fact that Greece may not be able to pay back loan obligations is definitely some good news. Safe-haven demand for metals has jumped up a bit over the past two weeks and will likely continue to remain resilient so long as the debacle surrounding Greece continues. As AvaTrade’s chief market analyst Naeem Aslam put it when speaking with CNCB, “Everyone is piling up their bets for the safe haven as we are moving closer and closer to no deal for Greece.”
I am sure that the next few days and coming week or two will bring many more headlines concerning Greece, though I do have my doubts with regard to whether they will be all that much different than headlines like today’s.
Softer Dollar Propels Metals, Stocks Cap Gains
A weaker US Dollar complemented safe-haven demand for precious metals nicely today to help gold to a third consecutive session of gains as well as a one-week high. Part of the reason spot values could not venture too much further forward today was due to the fact that US equities rebounded after a rough last few days. Quite ironically, a lot of the gains made by US stocks today are being attributed to a contingent that believes Greece will, in fact, reach a deal with their creditors.
Citing remarks by German Chancellor Angela Merkel today which alluded that she would not like to see Greece leave the EU, some people are of the belief that Greece will reach a deal after all. Though I am not necessarily buying into this, there is plenty of reason to believe that EU member-nations would like to see the region left unchanged. With contrasting days such as this, it will truly be interesting to see what will happen by the time June comes to an end.
Wrap-Up
Though today was not all that eventful, we have begun to notice two separate beliefs being spread around the global marketplace pertaining to Greece’s likelihood of reaching a deal with creditors. Over the course of the last two days of this week, we will have to continue paying close attention to remarks made by all involved parties as these are more or less the only clues the investing world has to go off of.
