Gold and silver regain ground as investors snap up bargain price levels
Gold and silver have regained some ground on this morning as bargain hunters in Asia snapped up the metal after prices dropped 2 percent in the previous session, Concerns Greece could default on its mountainous debt commitments due on March 20th triggered a wave of risk aversion Tuesday as Greece gave private creditors until Thursday to agree to voluntarily participate in a bond swap, sending equity and commodity markets sliding lower. In addition Euro zone revised GDP showing the region contracted -0.3% last quarter while a report from the Institute of International Finance suggested a disorderly default would not only cost more the €1 trillion but would “lead to the hurried exit of Greece from the euro area, this financial shock the ECB could raise significant stability issues about the monetary union.”
Worries that Greece may not secure a deal with private creditors to cut its debt by the Thursday deadline, spurred selling in shares, but pressure on gold was offset by a bounce in the euro and physical off take.
"I think the market is waiting for U.S. non-farm payroll data for clues on whether the United States will launch QE3,"said the dealer, referring to a possible third bond-buying programme to lower interest rates. But the U.S. economy probably recorded a third month of solid job gains in February, which could further reduce the chances of additional monetary stimulus from the U.S. Federal Reserve. The Labour Department is due to release the February employment report on Friday at 8:30 a.m. EST (1330 GMT)
Silver tracked gold higher, while platinum and palladium also rebounded from Tuesday's lows.
For more on gold and silver click on the links below;
John Embry – Conditions are Deteriorating at an Alarming Rate
Will Doomsday Bill Help Gold & Silver Shine?
Central bank meetings, US jobs report, Chinese data keys for gold, other commodities
People always look for the most stable kind of money – usually gold or silver- David Levenstein
“Absolutely nothing has changed regarding the fundamentals of gold which remain as sound as ever with broad based demand from store of wealth buyers, institutions and central banks internationally, and especially in Asia. The financial crisis in Europe has not been resolved and the staggering level of debt in the USA will ultimately become unsustainable, prices will soon recover and test $1800 an ounce level”. (David Levenstein)
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