Gold was up across the board for the sixth straight session today. The yellow metal seems to be holding steady, but will await the Greece election outcome this weekend and then we will see what happens to the precious metal from there.
An overall climb of 2 percent is how the yellow metal will finish the week. Hope of another stimulus is currently fueling the yellow metal upwards, while a little trepidation is in the wings regarding this weekend’s election. While investors are nervous at what the outcome may be, it hasn’t affected the price of gold too badly, as the yellow metal has remained strong recently despite the situation in the Euro zone. Hopefully that will continue after this weekend.
Gold for August delivery GCQ2 +0.49% shot up a nice $8.50, or 0.5%, to settle at $1,628.10 an ounce on the Comex division of the New York Stock Exchange. The metal scored a weekly gain of 2.3%, erasing the 1.9% loss it saw the week before. This was encouraging for many gold investors, but remember, a lot is happening in the Euro zone this weekend, so lets see what gold does after news breaks of the election results.
“Gold has crept up this week, likely due to a confluence of developments,” said Sonny Tahiliani, managing director at MacroMoves in New York.
Those include G-20 central bank affirmations, the Spanish bank bailout, Greek weekend “angst” and U.K. emergency scheme, he said. “The responses required in political economies during a global debt deflation is ultimately positive for gold.”
The Euro zone has been a mess for over a year now, continuing to fall deeper and deeper into debt. While a debt management plan was passed, the reality of it was that it was only a temporary fix to the problem. Something long-term has to be done, and the election outcome this weekend in Greece should give us all a better idea of where everything will head into the future.
“The weekend ahead could result in major changes for the euro zone,” said Julian Phillips, an editor at GoldForecaster.com and SilverForecaster.com, with the left wing evenly matched with the right wing in Greek elections.
If the left wins, “expect major, developed world, financial turmoil,” he said. “This heightens risks in all markets, and makes gold and silver a safe place to be.”
Either way, make sure you either hang on to what you have, or put your money into gold as a safe haven for the months to come. Should be interesting.
Original Articles: http://goldcodirect.com/news_desk.php?news_id=274