Gold prices are steady on Friday, as the metal is trading at a spot price of $1204.04. Gold is struggling, having lost over 2% of its value this week. Is the metal poised to break below the key 1200 line? On the release front, there are two key releases on the calendar – Unemployment Claims and the Philly Fed Manufacturing Index. The markets are expecting stronger readings from both indicators.
Is an agreement in sight between Greece and its creditors? Eurozone finance ministers were unable to draft an agreement on Monday, but the finance ministers will try again on Friday. Greece has requested an extension of the bailout, which expires next week. However, the details of the request are not clear, and the parties will likely conduct tough negotiations at the Friday meeting. The stakes are high, since if Greece does not receive bailout funds or bridge funding, Greece could be forced to leave the Eurozone and abandon the euro.
On Wednesday, the Federal Reserve released the minutes of its previous policy meeting. The minutes were decidedly dovish in nature, as Fed policymakers raised concerns that a mid-year rate hike could hurt the economic recovery. The Fed also said it was worried about the impact of global events on the US economy, such as the slowdown in China and the Greek financial crisis. With US inflation at low levels, the Fed is not in any rush to raise rates, so speculation of a mid-year rate may have been premature.
