Industrial metals exult
The meeting of European financial ministers and the International Monetary Fund (IMF) on the Greek crisis in Athens has created some doubt among investors over Greece's ability to surpass this dilemma, while gold settled around $1146.00 in today's morning trading.
Gold has gained 0.13% today and is trading at $1147.70 at 3:04 EST, while copper climbed 0.4% to 3 year record high mark of $7790 metric ton. Platinum and palladium have risen 0.9%, 0.4% respectively to their 2 year peaks as they are trading at $1747.00 and $565.50 respectively.
The Greek crisis has affected the FOREX market, where the Euro lost ground against the dollar. Investors fear that the 45 billion euro aid package provided by the EU and IMF will fail to succor Greece's morbid economy, as investments start tuning to gold for a safe haven.
Industrial metals like copper, platinum and palladium received a boost yesterday by data from China that concluded a rise in Chinese imports, which would mean a growth in demand for metals.
The American auto industry has been climbing steadily in the last three months, as most of the automakers in the first quarter marked positive results that were twice the expected. This also pushed industrial metals in the upward direction.
Precious metal are in the middle of a battle of two forces, the first being positive and resulting from safe haven investments due to the reigning doubts in markets, while the other is a downward force by the growing greenback.
Oil had dropped yesterday below the $84 mark as a result of a worse than expected inventory report from the U.S., reflecting weak demand and consumption.
S&P GSCI closed with a gain of 1.17 points at 541.39 in evening trading, as the RJ/CRB closed at 276.75 after climbing 097 points.
Gold futures due June fell by 0.10% to $1147.60 at 2:35 EST, as silver futures rose 0.09% to $18.095 and copper futures dropped 0.55% to record %252.500.