Greece, creditors still trying to thrash out deal; platinum prices narrow discount to gold
Gold prices held below $1735 an ounce in Europe on Thursday, underpinned by gains in the euro as Greece edged closer to a bailout deal, although stock market fluctuations after a raft of disappointing corporate results kept a lid on gains.
Prices are up 10,9% so far this year, buoyed by the view that US monetary policy will remain extremely loose.
It has failed to benefit, however, from the jitters over European debt that sent it to a series of record highs in recent years, as these were offset by currency moves. Gold prices rallied nearly 5% to then-record highs in the fortnight after Greece agreed its first bailout deal in May 2010.
“Gold has been trading along with everything else. It doesn’t seem to be a risk trade at the moment, as much as a dollar/euro trade,” said Citigroup analyst David Wilson.
As such, a failure by the Greek authorities to secure a deal could hurt gold, he said. “Strangely, if Greece doesn’t agree to austerity in the next couple of days, it might be negative for gold in terms of dollar/euro.”
Spot gold was at $1733,80 an ounce at 1024 GMT against $1733,39 an ounce late in New York on Wednesday, while US gold futures for February delivery were up $3,60 an ounce at $1732,90.
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JAN HARVEY
Published: 2012/02/09
