Gold pulled around by Greek crisis and fluctuating financial markets
Gold is appealing to investors as a safe haven, as confidence in European markets freefalls due to the Greek crisis. Investors have also been exchanging their euros for gold; this pushed ounce of gold to new historical record against the euro, currently 879.00 euros per ounce.
New York trading yesterday saw gold climbed to a peak of $1189.00 before closing at $1182.30, gaining 0.25%. While in London, gold climbed from the $1175.25 morning Fix to the evening Fix of $1179.25. Oil advanced to $87.00 yesterday, being one of the main factors that ensued gold to rise, due to the positive relationship between them.
Silver in New York climbed to a peak of $18.89 yesterday before closing at $18.80, augmenting 0.86%. This upward movement can be explained as a tendency of investors to purchase silver as an accompanying alternative investment during times of falling stock indices and high fluctuation in markets, both of which are present currently, adding to that the effect of the Greek crisis. Gold lost some of its gains during theU.S. session due to risingU.S. stock indices, as the yellow metal lost its appeal, while silver was hauled by the alternative investment and maintained its high position.
Platinum, on the other hand, incurred losses amounted to 1.04%, as it closed at 1721.00 in New York after falling from the acquired $1749.00. Platinum's New York closing price was below that of London which equaled 1738.00. Platinum, being an industrial metal apart from an investment, was abandoned in favor of American stocks which gained yesterday with the ISM data better than expected, while gold and silver were able to retain the progress they had made. Platinum traders are anxious over China's tightened credit policy, making platinum susceptible to any opportunity arising in the stock markets.
S&P GSCI and RJ/CRB were able to close at gains of 3.09 and 0.39 points respectively, despite varying result in the commodities market. On the other hand, ROGERS INTL shed 9.74 points before closing. The expected increase in American oil reserves pushed oil down after it rose to 87.00.
As seen at exactly 2:56 am EST, precious metals are loosing their altitude. The dollar is showing strong impulses on the euro and yen front, while settling at close to day's peak against the pound. As we pointed out earlier, American oil reserves are expected to rise, this is why gold has currently fallen to 86.00. Thus, speculators have been tempted to sell precious metals. Meanwhile, Asian stocks' retreat had no positive effect on precious metal, as profit taking continued to strengthen speculative powers in the market. Gold alternative investment was tampered by European Central Bank's acceptance of Greek bonds, making them more lucrative to investors.
Gold is currently trading at 1179.10, up by 0.27. Silver, meanwhile, has dropped 0.645 and is trading at $18.68, whereas platinum made no movement from yesterday's New York closing price of 1712.00.
Trading is expected to be turbulent, while most investors are aiming for profit taking and opportunities in the European stock market where the French CAC index gained 0.30%. Despite the profit taking, precious metals, most importantly gold, are predicted to maintain a bullish course with the prospect of setting new records.