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Precious Metal Prices Thrive on Greek Uncertainty

By on November 3, 2011

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.