With Greek elections over, gold remained steady
The Greek elections were held this past weekend, and as many investors held their breath, good news (according to some but not others, such as Richard Cottrell) came from the results.
The outcome of the election was expected by many analysts and commentators, but the final positioning was much closer than originally expected.
It was obvious that what happened in the Greek elections this weekend was going to affect gold one way or another.
When the results finally came in, gold remained steady, as the pro-bailout and more conservative party was able to squeeze out the victory.
While the Greek election came out as many expected with the pro-bailout party taking the win (as mentioned above), the surprise was that the victory was by a smaller margin than many would have guessed.
Even with the pro-bailout party in place, a coalition government still needs to be formed in Greece, something that we will have to see before investors feel more comfortable and confident about the future.
Most German government officials unsurprisingly applauded the Greek elections and said that Greece is moving in the right direction.
European and U.S. stocks were narrowly mixed on the Greek election news, which is not a ringing endorsement from investors. I would guess that many are waiting to see a true coalition government come into power before jumping in feet first.
This is simply because there is so much history there that many investors are still weary of the situation, hoping that these elections will indeed lead Greece to some sort of financial conclusion, which would open the door to more gold and silver investing without fear of a Greek collapse.
August gold last traded up by $1.70 to come in at $1,629.70 an ounce. Spot gold was last quoted up by $2.30 an ounce to come in at $1,629.50. July Comex silver last traded up by $0.01 to come in at $28.75 an ounce.
While none of the precious metals experienced a huge jump in price, they all made modest gains and were able to hold steady against the backdrop of the election results.
Even though the price gains were quite modest indeed, it was nice to see a steadiness in price after previous instability in the precious metals markets.
Even though the results were positive, most investors will continue to wait to see what happens in the coming weeks.
As many of us know, the situation in the eurozone, particularly Greece (and of course Spain and Italy as well), has been the cause of plenty of fears and hesitations from investors.
So much of the world’s money is tied up in Greece that if their economy goes belly-up it will affect most, if not all, of the major world markets.
This positive election outcome is a step in the right direction. However, more needs to be put in place, as another “temporary fix” will simply not do this time around.
Gold should remain steady and with more positive news it could continue to climb, at least that is what many investors are hoping.
The above article is for informational purposes only and is not a solicitation by End the Lie or Goldco Direct. It is the commentator’s opinion only and not intended for investment recommendations, and does not necessarily reflect the views of End the Lie or Goldco Direct. Any references to outside sources are believed to be accurate. Past performance is not a guarantee of future results. All commodities involve risk. Investors should consult their financial adviser before making any investment decisions.
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