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    JM Bullion Weekly Market Preview (6/8/15)

    Gold prices are slightly firmer this morning to begin the new trading week as stocks, oil and the dollar index are all moving lower. Gold is likely seeing some short covering activity, as well as bargain hunting following the recent downside.

    The gold market has broken some key near-term support and may be poised for further downside. While the $1140 area would seem a likely downside target, the market may see some support as the deadline for a deal between Greece and its creditors approaches.

    Greece “delayed” a payment due to the IMF on Friday and has said it will bundle several payments together to be paid at the end of the month. Many analysts view this as an attempt to simply delay the inevitable — a Greek default.

    Talks are ongoing between the nation’s leadership and its creditors, and any progress reports have been very mixed. While some reports have suggested that meaningful progress is being made, other reports suggest that the two sides could not be further apart.

    Either way, the time to make a deal is running thin. With the current bailout extension set to expire on June 30th and several large payments coming due at month’s end, the situation is coming down to the wire. Realistically, even if a deal were reached this week it could be difficult to have such a deal in place before the end of the month.

    If no deal appears to be in the works, markets may start to get very anxious long before the 30th, and risk aversion may cause widespread selling in risk assets.

    While markets will pay close attention to ongoing developments surrounding Greece, investors are also watching the data stream and the Fed. This week will be on the lighter side from a data standpoint, with the latest readings on wholesale trade, MBA mortgage applications, weekly jobless claims, retail sales, PPI and consumer sentiment all set for release.

    Following last week’s better-than-expected jobs report, some analysts feel the likelihood of a fall lift-off by the Fed is greater. While a September or even July hike is still a possibility, it seems that the Fed may be more patient even in spite of the strong jobs report.

    Last week’s plea from the IMF to delay raising rates until next year may or may not affect the central bank’s decision. The IMF warned of disorderly markets should the Fed begin raising rates, and voiced concerns over possible liquidity problems and a reversal of capital flows.

    Disclaimer: All Market Updates are provided as a third party analysis and do not necessarily reflect the explicit views of JM Bullion Inc. and should not be construed as financial advice.

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