Fundamental Precious Metals (2011-06-17)

<h3>Gold consolidating above $1520.00 per ounce</h3>
By @ibtimes on

Gold consolidating above $1520.00 per ounce

Gold is still trading within narrow levels for the consecutive second day, where yesterday gold declined slightly but held its grounds above $1520.00, affected by the appreciating dollar, which made the precious metal an alternative investment.

Gold started the Asian session today at $1529.37 per ounce, and then declined to the low of $1525.73, after achieving the high of $1530.35, and currently trading around $1526.44 per ounce.

Gold could gain today, because of the Greek debt crisis, which is forcing pressures on the global markets and raising concerns because of the likelihood that Greece may default. Today the German chancellor, Merkel is to meet the French Prime Minister, Sarkozy in hopes to come up with an applicable solution regarding the current situation in Greece, seeking to calm the jitters in the area.

The reformation of the Greek cabinet should be declared today, and will be put for a confidence vote in parliament, which if didn't pass, might have devastating downside effects on the market. The Greek Prime Minister, George Papandreou is trying to avoid the possibility that Greece may default by forcing austerity plans in order to meet the conditions of the European Union seeking for a new aid package.

Silver is declining for the second day, where the speculation forces in the market are staying away from the metal while concerns are dominating the market regarding the European debt crisis and rising inflation. The metal opened the trading at $35.52 per ounce, and currently trading around $35.38 within narrow levels between the high of $35.69 and the low of $35.24 per ounce.

Platinum is currently trading around $1759.00 per ounce, after the opening of $1760.00, it inclined to record the high of $1764.00 and the low of $1754.00 per ounce.

Join the Discussion