Precious Metal Prices Thrive on Greek Uncertainty
Uncertainty over the Eurozone crisis has pushed the prices of precious metals and crude oil to record highs in just a few days of trading.
Since the end of October a few days ago, the price of an ounce of Gold has soared 2% to $1763.8 from $ 1726, an increase of $ 37.8.
The steady increase in the price of gold is a reflection of the loss of confidence market players have considering the current economic situation in Europe.
However recent news coming out of the G 20 summit currently underway in France, may reverse the trend.
It is rumored that the Prime Minister of Greece, Papandreou will reverse his “unpopular” decision to call a referendum allowing Grecians choose to accept the bailout package or not.
Markets are already rallying in anticipation that the referendum will be canceled. This proves that this is purely a sentiment game, and investors are really just trading on good news and bad news.
American markets have responded well, NASDAQ, S & P 500 and the DOW are up 2.20%, 1.88% and 1.76% respectively.
As at press time, the price of Gold is at $ 1,764.70, according to Bloomberg.
Brent Crude is also up 1.7% since the end of October.