Gold and silver continue to rally on Greek austerity bill
Both gold and silver have seen a steady start to the week, tracking gains in shares and the euro after Greece’s parliament finally approved a deeply unpopular austerity bill to secure a second bailout from the European Union and the IMF to avoid bankruptcy. The Greek parliament approved on Monday the deeply unpopular austerity bill, while serious violence broke out on the streets of Athens and spread across the country. Prices remain underpinned by strong physical demand.
The European Union meets on Wednesday to discuss giving a seal of approval for the new 130 billion-euro bailout."We are still looking for more measures out of Europe before we see a sustainable risk rally. Yes, perhaps it's good that we have a second bailout package and we are sure that at least we are not going to see Greece defaulting," said Ong Yi Ling, an analyst at Phillip Futures. "I am looking for the resistance for gold at about $1,760.That will be the first resistance and the second one is at about the $1,800 level. For gold to break the $1,800 level, we need more measures, I would say."
Asian shares and the euro gained modestly on Monday, relieved by the Greek parliament's passage of austerity measures which put the country a step closer to securing a much-needed bailout fund and avoiding a messy default.
"The Chinese guys are still buying. Whenever there is a dip in prices, they will buy. There's no change in their attitude, “said a physical dealer in Hong Kong, who trades gold bars."They are still buying today, because I think the downside is limited for the time being. Sentiment has improved a little bit."
For more on gold and silver click on the links below;
Celente – Gold, Silver, War, Systemic Collapse & Social Unrest (King World News)
Conflict between Iran, West could raise gold prices: HSBC (Commodity Online)
Mother of all gold bull markets remains intact: Grandich (Mineweb)
Silver Price Continues to Rally into First Week of February (Silver investing news)
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