Gold and silver held in tight range after EU ministers hold off on Greek bailout package
The metals markets have reflected the tone of risk aversion this morning as the absence of a concrete resolution to Europe’s debt problems saw gold and silver off recent highs. Euro zone finance ministers held off on approving a bailout package for Greece even after it said it had clinched a deal on economic reforms.
The CME Group on Thursday lowered trading margins for a range of commodities futures contracts, including gold, silver and platinum, effective after the close of business on Monday. This is the first margin cut for COMEX gold since June 2011.
"Many are still standing on the side waiting for something new to happen in the market," said Peter Fung, head of dealing at Wing Fung Precious Metals in Hong Kong."COMEX cut margins probably because the market volatility was low and people didn't have much interest," he added.
Gold prices have been heavily influenced by the grinding process of getting Greece to agree to reforms and austerity measures in exchange for a bailout from its international lenders.
Investment demand in bullion remained steady as the murky economic outlook supported safe-haven interest.
For more on gold and silver click on the links below;
How high and low could gold, silver go in 2012? (commodity online)
BoE Repeats ‘Desperate Shot in the Dark’ of Quantitative Easing (Resource investor)
Leeb – US Government Desperate & Scared Regarding Gold (King World News)
Call us on 01158 532900.