Pessimism or optimism, gold is gaining in both cases
Asian trading today was marked by rising gold, as it recorded the highest mark in four months at $1175.42. This appreciation was triggered by growing demand on the metal by investors seeking a safe haven, while the Greek crisis slowly spreads to other EU countries.
Currently gold is trading at $1171.63, up by 0.4%, while silver ascended 0.1% to %18.494. Platinum climbed up by 0.4% to $1178.50, marking a 5.85% rise throughout April. Palladium rose by 0.1% to $552.03, gaining 15% through April.
According to official statements, Greece is close to receiving its 45 billion euro aid package, as more details are expected to be released throughout the next several days.
Greece is no more the only concern to investors, for the symptoms of the crisis are spreading to other countries as in the case of Portugal and Spain, whose credit rating was lowered by Standard & Poor's. Though, the Spanish finance minister said that the government is able to pay its debt and needs no assistance from other European countries, the same rhetoric was heard before in another country, thus the market is still clenched with fear.
Asian stock indices climbed up today, supported by better than expected earnings from companies, reassuring investors after the huge slump the market witnessed in the last few days.
Fear in financial markets has been providing gold with safe haven demand, while optimism over the resolution of the debt crisis in Europe also spurred demand for the yellow metal, as the demand for the greenback fell and turned investment to gold. Gold is a winner in both optimistic and pessimistic scenarios.
The release of the first quarter GDP by the United States is expected to show a decline in growth to 3.3% after 5.6% in the previous reading, while the US economy has been one of the pioneers in dealing with the global financial crisis and one of the first to show signs of revival and growth.
S&P GSCI closed at 544.42 yesterday up by 5.48 points, while RJ/CRB gained 0.78 points to close at 275.29.
Gold futures due June rose by 0.40% at 03:15 EST reaching $1173.500, while silver futures fell by 0.26% to $18.530. Copper futures, in the mean time, rose by 0.60% to reach $337.10.