Gold dipped for a time to a 3½-week low of $1,170 per troy ounce yesterday but is trading slightly above this level again this morning. In euro terms, gold fell at times to €1,040 per troy ounce. As already announced by the Greek government, Greece failed to make its payment to the International Monetary Fund (IMF). As such, Greece is classed with immediate effect as insolvent and is also not permitted to service other creditors due to the IMF's preferred creditor status. The second EU aid programme also expired yesterday, and the ECB had already frozen its emergency liquidity assistance (ELA) for Greek banks on Sunday. National bankruptcy is becoming increasingly difficult to avoid. The Eurogroup plans today to discuss Greece's request for two years of support from the EU bailout fund, the ESM. The outcome of this Sunday's referendum will doubtless determine to a major extent whether Greece exits the Eurozone. According to a survey, 46% of Greeks would currently vote against the conditions imposed by the country's creditors, while 37% would vote in favournotes Commerzbank. The subject of Greece is overshadowing all other news stories. As published yesterday, the core inflation rate in the Eurozone was 0.8% in June, which is somewhat lower than in the previous month. This should go some way to dampening the inflation expectations on the markets and should also reduce the attractiveness of gold as protection against inflation, says Commerzbank. Palladium gained $20 for a time this morning to reach $695 per troy ounce but has been unable to maintain this level. A countermovement following the sharp price fall in recent weeks is overdue, however.

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