GOLD STALLED ON STRONG DOLLAR FOLLOWING GREEK VOTE
Gold’s slight boost was derailed due to a robust dollar following the rejection of a bailout by Greek voters. The yellow metal, usually seen as a haven in trying financial times, could not rally because the dollar gained on the euro. “There isn't the fear of a pan-European crisis, as was the case a few years ago, when you saw a rush to Gold, which was already in a bull market,” Macquarie analyst Matthew Turner said, referencing Gold reaching an all-time high of $1,920 per ounce in 2011 on eurozone debt fears.
The Greek vote means the country is in uncharted waters, as without a bailout, the country is risking a bank collapse. “Unless (banks') lending (to Greece) is topped up, the banks risk running out of money, which would mean a new level of escalation in the debt drama and should lend support to the Gold price,” Commerzbank said in a note. Investors are still focused on the potential Federal Reserve interest rate increase, which could boost metal prices.
At 9:39 A.M. (ET), the APMEX Precious Metals spot prices were:
APMEX’s Account Managers now have extended hours Mondays through Thursdays and are here to serve you until 8 p.m. (EDT)! Or call us Fridays until 6 p.m. (EDT)! If you have any questions about investing in Precious Metals or simply would prefer to place your order by telephone, we are here to help.