Gold and Silver Report 6 June 2015

The Greek crisis worsened as it became the first developed country to default on an IMF repayment. However, the situation has so far had limited impact on commodities as investors remained wary of safe-haven bids, and due to a stronger US dollar. However, a slightly weaker than expected US jobs report lent some support to the metals at the end of the week.

Start of Week Price and Charts snapshot:

Commodity Units Price

Change

% Change

COMEX Gold (Aug 15 delivery) USD/t oz. USD$1,167.80 (AUD$1553.49)

+4.30

+0.37%

Gold Spot USD/t oz. USD$1,168.70 (AUD$1554.68)

+2.44

+0.21%

 

COMEX Silver (Sep 15 delivery) USD/t oz. USD$15.66 (AUD$20.83)

+0.09

+0.60%

US Dollar Spot USD/t oz. USD$15.70 (AUD$20.89)

+0.00

+0.01%

Source: bloomberg

Source: NASDAQ

On Monday, gold jumped after the Greek debt crisis took a turn for the worse over the weekend as bailout talks between the Greek government and foreign lenders broke down over the weekend.[1] However, gold prices fell on Tuesday despite Greece becoming the first developed country to default on an IMF loan, as investors remained unsure of any long-term safe haven appeal. The default also sunk the euro lower compared to the US dollar, which pressured gold as a stronger greenback makes gold more expensive for overseas currency holders. On Wednesday, gold fell as the US dollar strengthened and hopes for progress in the Greek crisis revived after the country announced it may accept bailout offers if some conditions were changed.[2] Gold rebounded slightly again on Thursday after US jobs data was slightly weaker than expected, inviting speculation the Federal Reserve may hold off on raising interest rates. The jobs report was closely watched as the Fed previously said it will only raise rates on signs of a sustained economic recovery.[3]  On Friday, gold prices firmed as the US dollar softened on the back of the jobs report, while investors remained cautious ahead of Greece’s referendum.

The impending Greek slide towards a euro exit carries broad implications for the global financial system. However, the impact on commodities has yet been limited as investors remain cautious. Ronald Leung of Lee Cheong Gold Dealers in Hong Kong noted that “Surprisingly, the safe-haven bids haven’t materialised,” adding “Maybe they will once we see the impact of a Greek default spreading to other countries in Europe and elsewhere”.[4] Macquarie analyst Matthew Turner said “Everyone says this crisis should be good for gold, but no one has made a convincing case on who should be buying gold … Greeks are going to hold euros.”[5]

Meanwhile, metals prices have also been restrained due to expectations the Federal Reserve will raise US interest rates this year. Michael Widmer of Bank of America Merrill Lynch said “The gold price is telling you the market is not concerned about Greece” adding: “The [US] dollar is the bigger force at the moment.”[6] Analysts say any fallout from Greece is expected to be modest in the United States and would not impact the Fed’s likely September rate.[7]

The Greek government has called a referendum which is now underway, and the market is now watching the it closely. Commerzbank analyst Carsten Fritsch said “It’s not only about the outcome of the referendum, but also about the reaction of the European Central Bank, which could cut the credit levels of its funding to Greece”.

Author Lisa Casagrande | https://www.goldbullionaustralia.com.au


[1] http://uk.reuters.com/article/2015/06/29/markets-precious-idUKL4N0ZF1OI20150629

[2] http://uk.reuters.com/article/2015/06/30/markets-precious-idUKL3N0ZG2ZP20150630

[3] http://uk.reuters.com/article/2015/07/02/markets-precious-idUKL3N0ZI2PV20150702

[4] http://uk.reuters.com/article/2015/06/30/markets-precious-idUKL3N0ZG1GO20150630

[5] http://uk.reuters.com/article/2015/07/01/markets-precious-idUKL3N0ZH2UX20150701

[6] http://uk.reuters.com/article/2015/06/30/markets-precious-idUKL3N0ZG2ZP20150630

[7] http://uk.reuters.com/article/2015/06/30/markets-precious-idUKL3N0ZG1GO20150630

 

Keep informed of live spot prices, news and specials.

If you would like to stay informed about up to the minute pricing, market news and specials, subscribe here.

Live Prices

Gold

Silver

Gold

2,556.99/oz

Silver

29.72/oz

Gold

2,556.99

Silver

29.72

Latest Post

Where Are We Headed: Inflation, Asset Markets, Currencies, Commodities & Precious Metals

China’s Imports Shift Platinum Into A Global Deficit, Presenting A Conundrum To The Industry

THE CRUNCH IS COMING FOR SOUTH AFRICAN PLATINUM MINES, BY WAY OF WAGE DEMANDS

Interest Rates Rising: A Very Bullish Signal For Precious Metals

IMMENSE SEASONAL BUYING OPPORTUNITY IN GOLD, SILVER & PLATINUM IS UPON US

Mining Platinum Group Metals – Part 2

South African Platinum Mine Supply in Decline as Demand Gains Significant Traction – Part 1

Auctus Metal Portfolio Overview – 1 November 2021

UK Hydrogen Strategy 2021 Platinum Long-Term Demand Moves Ever Higher

WHY HAVE PRECIOUS METALS UNDERPERFORMED IN 2021?

MASSIVE EXPLOSION AT ESKOM’S NEW POWER UNIT ‘MEDUPI’

Understanding Why Precious Metals Are Undervalued

The Impact of South Africa’s energy crisis on PGM mine supply

CYCLICAL TRENDS IN PRECIOUS METALS

WHY METAL FALLS?

Auctus Metal Portfolio Overview – 1 June 2021

Price Volatility & Correction In Platinum Group Metals ( PGM’S ) in May 2021

A CASE FOR PLATINUM

THE SLINGSHOT SETUP IN PRECIOUS METALS

PLatinum (Pt) UPDATE

PRICE FALLS IN METALS

The Hare and The Tortoise Story

Immense Seasonal Buying Opportunity in Gold, Silver & Platinum Is Upon Us

The impact of the COVID-19 pandemic on South African PGM supply, on global supply and ultimately on the price of platinum, palladium and rhodium. – Part 3

The impact of the COVID-19 pandemic on South African PGM supply, on global supply and ultimately on the price of platinum, palladium and rhodium. – Part 2

The impact of the COVID-19 pandemic on South African PGM supply, on global supply and ultimately on the price of platinum, palladium and rhodium. – Part 1

AUCTUS Company Portfolio Models Overview as of 1st June 2020

Gold and precious metals are among the safest investment assets during a global crisis

Investing in and Retaining a precious metal portfolio during the COVID-19 pandemic

How Cheap is Gold as of April 2020

Anglo Platinum

Platinum – Supply and Demand

Platinum price to rise as “climate change” pressure gains traction

David Davis

Auctus Metals Breaks+50% Annual Net Returns for Year 2019

Big Profits in Buying Gold, Silver & Platinum in December

What’s the difference between and optimist and a pessimist?

Our Clients Portfolio Performance Spectacular Chart Performance – 3 charts

Silver Technical Picture Price Outlook

China Devalues their Currency

Palladium – the quiet achiever of the Precious Metals Portfolio

Diversification within Precious metals – The Potential is Incredibly Compelling

Why Silver is seriously Bearish

Forecasts are now becoming mainstream plus platinum

Historical Precedent in Silver & Gold

The perfect storm slowly starts to hit and can no longer be ignored

A Momentum Lead Capitulation in Platinum, A Major Triple Bottom Develops?

Black swans darkening the sunlight out from view

WHAT IS IT ABOUT PGM’s (Platinum Group Metals)?

Have you considered Rhodium?

Historical Investment Opportunity Presents Itself

Bullion Banks ARE Now the Most Bullish on Silver in Decades!

A Confluence of Events in Silver Are Coming Together

A Confluence of Events Leading to Silver Price Rise

We are currently at a 1 in 5-year event

DEBT CRISIS, CRYTOCURRENCY, PROPERTY AND A MONEY TSUNAMI

First Bullion Bulletin – Update with David Mitchell

Porsche Gold Rush: Special operation for Porsche on the streets of London

METALS, STOCKS & BONDS

Happy New Year – what is happening at GBA and precious metal investing

HOLIDAY TRADING

NOT ALL THAT GLITTERS IS GOLD

This Week’s Specials

PERTH MINT YEAR OF THE DOG 2018 GOLD & SILVER BULLION COINS

The Biggest Opportunity in Precious Metals Since Late 2015, and the Last Chance at These Prices ?

Please tell us what you think of the new GBA website!

X
2,556.99
29.72