Gold price was mostly range-bound this morning, trading on both sides of $1,200 as various factors pull the yellow metal in different directions.
Investors are keeping an eye of Greece as the country has yet to submit a list of reforms to its creditors and in increasing danger of running out of money to service its debts, the prospect of its exit from the eurozone – the so-called ‘Grexit’ – continues to overshadow markets.
While investors look to buy gold on safe-haven demand, the pressure on euro and bid on dollar is also keeping gold price in check.
“Gold has had ample opportunity to rally, with the Chinese cutting reserve requirement ratio levels, the Russians continuing to add gold to their reserves with a million ounce purchase in March and the situation in Greece showing no signs of improvement,” said a note from broker Marex Spectron.
“However, the dollar and stock market strength remain the main driver in the precious metals markets with traders reasoning, quite rightly, that gold is providing no hedge against geopolitical risk and returning zero value on investment this year. As such, we remain range bound for the moment but with the dollar continuing to strengthen.”
The dollar index rose higher today, last seen at 98.01 versus yesterday’s close of 97.96.
Spot gold price was lower this morning at $1,199.30 per ounce, slipping about $4 from Tuesday’s close. Silver was also trading sub $16, last seen at $15.95 per ounce.
The PGMs largely followed gold’s track lower – platinum fell $7 to $1,144 and palladium is down $3 to $766 per ounce.
The post Gold price rangebound, ‘Grexit’ concerns and dollar strength to be main focus appeared first on The Bullion Desk.
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