The gold price traded higher this morning during the Asian trade, as investors look to the safe-haven metal amid risky developments from Europe.
Markets are focused on two key developments out of Greece and Ukraine which could provide trading directions for the precious metals complex.
Spot gold price was last up $3 to $1,236.70 per ounce, and silver followed higher as well by eight cents to $16.98.
“Gold is clearly conflicted between the positive USD sentiment pushing the bullion lower and the Greek Euro issues providing support,” said analysts from ANZ Bank.
The European Council and Eurogroup ministers are meeting today and likely to discuss the concessions demanded by new Greek Prime Minister Alexis Tsipras with regards to the austerity programme. The Greek Finance Minister said this week it will implement 70 percent of reforms in the current bailout agreement with the Troika while the G20 finance leaders are hoping to clinch a Greek aid deal fast to avoid a potentially chaotic and disorderly exit risk.
“Short term, the possibility of a Greek exit or debt default should provide support for the metal, as well as continued uncertainty in Ukraine,” said broker MKS Capital in a note.
Elsewhere in Europe, political leaders will meet at a summit in Minsk today with Ukrainian president Petro Poroshenko and Russian President Putin to revive a collapsed ceasefire agreement signed last September.
For the other precious metals, platinum price was up $3 to $1,209 per ounce although palladium bucked the general uptrend to trade lower at $768 compared to Tuesday’s $771.
Recent worries over a slowing Chinese economy could drag on demand for the PGMs, said HSBC Securities analyst James Steel.
“Concerns over a slowdown in China’s economy may have some negative influence on platinum and palladium. China is a significant consumer of palladium for auto production and while it absorbs less platinum in the auto sector than palladium, it is by far the largest platinum jewellery consumer in the world.”
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