Gold made gains for the third consecutive session on Wednesday, supported by dollar softness and the Greek debt crisis.
The spot gold price was last at $1,187.20/1,188.00 per ounce, up $10.90 on Tuesday’s close and having earlier hit its highest in a week at $1,192.50.
The dollar hit its weakest since May 18 earlier this morning at 1.1386 against the euro though it has since clawed back to 1.1300.
European stock markets, which struck their lowest in around 16 weeks on Tuesday, recovered on Wednesday – the Dax closed up 2.4 percent, the CAC 40 by 1.75 percent and the Euro Stoxx by 2.02 percent.
Greek Prime Minister Alexis Tsipras was back in Brussels today for a meeting with the leaders of France and Germany in an attempt to unlock the crucial funds the country needs to service its debts.
“The uncertainty about what will happen next and whether Greece may ultimately have to leave the eurozone after all should contribute to solid demand for gold,” Commerzbank said this morning.
Greece may still be able to agree a deal with creditors and avoid the inevitable default that would otherwise lead to the country exiting the bloc. Still, the country’s latest proposal was reportedly criticised by EU officials for still failing to meet creditors’ demands on VAT rates, pensions and budget targets.
Other metals followed gold higher – silver was last 10 cents higher at $16.02/16.07 per ounce, platinum was $9 higher at $1,112/1,117 and palladium rose $4 to $740/745.
(Editing by Mark Shaw)
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