Gold edges up as Greek exit fears ease
By Chris Oliver, MarketWatch
LONDON (MarketWatch) — Gold futures edged higher on Monday, as concerns about a Greek exit from the euro zone eased marginally after weekend polls indicated conservatives’ popularity is on the upswing ahead of next month’s elections.
Gold for June delivery GCM2 +1.10% rose 0.6%, or $9.10, to $1,578.00 an ounce in European electronic trading on the Comex division of the New York Mercantile Exchange, after rising in the last two sessions.
Ahead of a U.S. holiday on Monday, gold prices ended higher in the regular New York session on Friday. Still, the advance wasn’t enough to offset a weekly decline for the metal, which ended down 1.4% for the week. Read more on Friday’s gold trading.
Credit Agricole CIB strategists said global risk markets would likely welcome the results of four separate Greek polls published Sunday, which showed the pro-bailout conservative New Democrats are gaining support with a modest lead over the radical leftist Syriza party.
“There will be some relief reverberating through markets at the news this weekend that Greek opinion polls show growing support for pro-bailout parties,” Credit Agricole analysts said in the note.
However, the analysts noted that the voters were surveyed ahead of comments from the International Monetary Fund’s head, Christine Lagarde, who told a British newspaper that Greeks should “help themselves collectively, by all paying their tax.”
Despite the poll results, Credit Agricole said “uncertainty remains” over whether a Greek pro-bailout coalition can be formed in the three-week runup to the election.
The dollar index DXY -0.23% edged back on Monday, after hitting a level not seen since 2010 on Friday. A weaker dollar is a positive for gold and other dollar-denominated commodities because it makes them less expensive for holders of other currencies. Read more on currencies
Elsewhere in the metals complex, silver for July SIN2 +0.70% delivery was up 0.4%, or 12 U.S. cents, to $28.51 an ounce.
July platinum PLN2 +1.13% rose $13.80 to $1,440.30 an ounce.
Palladium for June delivery PAM2 +2.60% advanced $6.50 to $596.50 an ounce.
Copper for July delivery HGN2 +1.28% climbed 4 cents to $3.49 per pound.