Gold to advance more ahead of the bond auctions today
After the heavy fluctuations seen yesterday, gold was able to close the session with gains as expected, where the metal is still held by investors awaiting the final deal between the Greek government and the private sector. Today, the metal is still demanded by investors as a hedge against uncertainty as the Greek debt-talks are to resume today, while Spain and France are to auction more bonds later during the session today.
Gold advanced 0.25% or $4.23 per ounce after the opening of $1660.00 per ounce to currently trade around $1664.23 per ounce. The metal set the highest at $1666.45 and the lowest at $1656.07 per ounce.
Moreover, the world's largest economy is to release heavy fundamentals today, which could add more volatility to the market as investors are still waiting the results of the Greek debt-talk, noting that Greece will not get any financial aid from the International Monetary Fund and the European Union unless the government reaches to an agreement with the private sector, who are expected to take losses on the Greek bonds.
Eyes will be focused during the European session on the Spanish bond sale as a start and then on the French auctions, where Spain will start selling bonds with several maturities at 09:30 GMT. Despite the successful Spanish bond auctions seen earlier this month, investors are still tracking the performance of the longer-maturity bonds, as Spain is to auction 4-year, 7-year and 10-year bonds today.
France will auction short-term and long-term bonds today, where the nation will auction on the short-term 2-year and 3-year bonds, while on the long-run the nation will issue bonds due in 2022 and 2040. Eyes will track the performance of the French long-term bonds, as the nation will sell long-term bonds for the first time after it lost the top credit rating of triple-A on the past Friday.
The sentiment is mixed in the market, awaiting the results of the Greek discussions with Greece's creditors; however, optimism is expected to be seen today in the market as sources in the market said that Greece is close to a deal with the creditors.
Reaching a deal with the creditors is essential for markets and for Greece, where the country should finish with the deal as soon as possible, as the nation needs this deal to avoid going through bankruptcy in March, when then 14.5 billion euros of bonds will mature.
Silver also gained as much as 0.24% of $0.09 per ounce to trade now around $30.63 per ounce, after setting the highest at $30.65 and the lowest at $30.41, noting that the metal started the day at $30.54 per ounce.
Among other precious metals, platinum also surged today after the opening of $1533.75 per ounce, recorded a high of $1538.28 and a low of $1521.25, to currently hover around $1534.75 per ounce after adding 0.72% or $11.0 to the single ounce.
Palladium added 0.41% or $2.75 per ounce after the opening of $667.00 per ounce, setting a high of $672.25 and a low of $665.75, noting that the metal trades in the moment around $669.75 per ounce.