The gold price was higher during Tuesday morning sessions, recovering from its lows as the euro lost ground against the dollar.
The yellow metal was last at $1,189.60/1,190.30 per ounce, a $8.10 increase on the previous day’s close. Still, conditions remain quiet as many market participates are absent for the Christmas and New Year holidays.
“We don’t expect much to happen for the balance of the week, as many participants are away for the Christmas/ New Year break, but the less-than-stellar late-year action in a number of commodity markets is indicating a rather sloppy start come January,” said Edward Meir at INTL FCStone.
Yesterday saw gold come under pressure on news out of Europe and a softer euro.
Greece will to go to the polls for a general election on January 25th following the Greek Parliament’s rejection of Prime Minister Antonis Samara’s nominee for President.
“The election was automatically triggered following Samara’s third and final failed attempt to have Stavros Dimas confirmed, paving the way for the anti-bailout Syriza party to potentially take power,” said MKS Capital.
“Greece’s four-year bailout is due to finish in February, however a victory to the Syriza party, which has pledged to write off much of Greece’s debt and renegotiate the terms of the bailout is causing growing alarm within the EU.”
The European Central Bank has already warned that a move towards anti-austerity against the EU and IMF would lead to sanctions.
The euro was last at 1.2174 against the dollar.
The data agenda is light today, with only Spanish flash CPI, EU M3 money supply and private loans of note. The US also has S&P/CS composite and CB consumer index scheduled.
Silver at $15.93/15.98 was up against the previous close of $15.76. platinum at $1,204/1,209 was $4 higher and palladium at $808 was up $1.
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