Gold is volatile, eyes on the Greek debt-talks
Gold ended last week bearishly, recording the first weekly losses in five weeks, where the metal declined sharply on Friday after the surprising jobs report from the world's largest economy, which shocked markets and forced heavy mixed pressures, reflecting sharp volatility in the market, which led some investors to liquidate their gold positions in order to protect their wealth and others to cover some of the losses incurred.
Gold gained 0.28% or $4.85 per ounce to $1731.10 per ounce after opening the session at $1726.75 per ounce. The metal set so far a high of $1738.32 and a low of $1726.35 per ounce.
Today, with the lack of important fundamentals from major economies eyes will be focused on the French short-term bonds sale and also on the Greek-debt talks, tracking any developments in the negotiations between the Greek government and the private sector over the new bonds to be issued in exchange for the current Greek debt.
Greece is going through a critical period now, where markets are waiting the Greek government to reach to an agreement with the creditors over the conditions of the new 30-year bonds to be issued instead of the existing Greek debt holdings, where we can see markets are consolidated awaiting the results of the Greek debt talks.
Greece attempts to narrow the coupon rate, the annual or semi-annual interest paid on the bonds, and to increase the real losses taken by the private sector, where reports mentioned that the private sector could be forced to take up to 70% real losses on the current debt holdings. In addition, national central banks in the euro-are region could also be involved in the debt swap deal along with the European Central Bank, noting that the Bundesbank holds the most.
Today, we can see the U.S. dollar returned to gain momentum after fluctuating heavily on Friday, forcing downside pressures on the metals, where the low yielding currency was affected sharply after the better-than-expected jobs report, which showed that the U.S. economy added more than 240 thousand new jobs to the public sector, while the private sector added an additional 257 thousands, leading unemployment to drop unexpectedly to 8.3% from 8.5%.
Speculation in the market suggests that the Feds will not provide further easing after the significant improvement in the economic data, while the Central Bank is expected now to move through changing rates before late 2014, which supported the U.S. dollar to regain so strength and appreciates against other currencies.
Silver however lost 0.23% of $0.08 per ounce to $33.59 per ounce after starting the session at $33.67 per ounce. The metal reached the highest at $33.79 and the lowest at $33.49 per ounce.
Platinum also shed 0.12% or $2.00 per ounce after starting the session at $1623.00 to hover in the moment around $1621.00 per ounce. The metal, which became cheaper than the shiny metal, recorded the highest at $1627.00 and the lowest at $1614.75 per ounce.
Palladium also retreated 0.28% or $1.95 an ounce, after recording the highest at $708.50 and the lowest at $699.75, to currently trade around $705.05 per ounce after opening the session at $707.00 an ounce.