Gold Rises as Greece Reignites Safe Haven Demand

Gold futures rose for the second straight session as Greece’s political crisis and a decline in equities spurred demand for the precious metal as an alternative asset.

The euro weakened to the lowest since March 2006 amid a debate on Greece’s membership in the European Union. The MSCI All-Country World Index of stocks declined as much as 1.4 percent. Last year, gold declined 1.5 percent as U.S. equities climbed to a record.

“The turmoil in Greece and the weakness in equities is bringing some investors to gold,” Adam Klopfenstein, a senior market strategist at Archer Financial Services Inc. in Chicago, said in a telephone interview. “We are seeing a rise in the haven premium of gold.”

via Bloomberg

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza