Gold Softer Even As Ukraine Situation Heats Up

Gold prices are modestly lower in early U.S. futures trading Wednesday, as follow-through technical selling is featured. The key “outside markets” are also in a bearish posture for the precious metals on this day—a firmer U.S. dollar index and lower crude oil prices. Gold prices dipped to a six-week-low overnight. April Comex gold was last down $2.60 at $1,205.80 an ounce. March Comex silver last traded up $0.102 at $16.485 an ounce.

Reports overnight said there has been progress in talks between Greece and the European Union regarding Greece wanting to roll back some of its austerity measures. The reports said the present bailout plan would be extended for six months—meaning Greece will receive immediate funds. This news is deemed slightly bearish for the safe-haven gold market. Greece is on the verge of insolvency and needs a fresh infusion of financing fast. In what has become commonplace on EU sovereign debt matters, this latest issue has just seen the can kicked down the road and the problem will surface again. Many traders and investors have become numb to the EU sovereign debt crisis news, which is now several years old.

In a sign of how European investors feel about the prospects of Greece remaining a viable, payment-honoring EU country, German 10-year bonds on Wednesday sold at a record low average yield of 0.37%. Read that as keen safe-haven demand.

via Kitco

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.