CO:Gold steady against dollar, higher against euro
By Allen Sykora
Gold is stable against the dollar but is benefitting against the euro from renewed appreciation of the U.S. dollar, says Commerzbank. “The price of gold should be well supported by the persisting uncertainty and high risk aversion of market players amid the crisis in Greece,” the bank says.
“Euro-group finance ministers were unable to agree on a common solution to the Greek debt crisis at yesterday's meeting in Brussels.” Germany’s finance minister stuck to his demand that private lenders should participate in any bailout.
“However, this would be regarded as default by the rating agencies, which other finance ministers do not want to risk.” In early New York trade, Comex August gold is down only modestly by $2.60 to $1,536.50 an ounce. However, over in the spot market, the gold is modestly higher in euro terms.
