Gold and silver maintain upward momentum
Gold and silver have started the week on a very strong footing with both metals maintaining their upward momentum from Friday’s session. Both metals look set to reach fresh multi week highs in the coming days.
Investors are waiting for euro zone ministers to decide later in the day what terms of a Greek debt restructuring they are ready to accept as part of a second bailout package for Athens. Gold rose 0.62 percent to $1,667.99 an ounce by 0237GMT as gains on Tokyo futures spilled into the cash market. Gold has risen more than 6 percent so far this year, but stayed below a lifetime high of around $1,920 hit last September. Overall trading was slow in Asia because physical markets in China, Singapore, Malaysia and Indonesia were closed for the Lunar New Year break.
The euro started the week in Asia with a negative tone as caution returned after Greece's financing woes. German Finance Minister Wolfgang Schaeuble said on Sunday the crucial factor in negotiations over a debt-swap plan for Greece was that Athens should by 2020 have a sustainable level of borrowing. Gold often dances to the tunes of the euro and stocks because of its safe-haven status, which allows speculators to sell the metal for cash to cover losses in other markets, especially during this period of uncertainty in Europe.
Silver extended gains and hit a high of $32.42 an ounce, its strongest level since early December. U.S. Mint data showed sales of silver American Eagles totalled 5.3 million ounces on Friday, on pace to surpass its record high of 6.4million ounces set in January 2011.
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