Metals market update for July 1

Today’s AM LBMA Gold Price was $1,171.70, €1,053.26 and £748.38 per ounce. Yesterday’s AM LBMA Gold Price was $1,175.00, €1,053.01 and £747.08 per ounce.

Gold slipped $6.70 or 0.57% yesterday to $1,172.50 an ounce. Silver remained unchanged at $15.72 an ounce.

Gold in Singapore for immediate delivery inched up 0.2% to $1,174.25 an ounce near the end of the day.

In spite of the Greek drama, the yellow metal has failed to see an influx of safe haven bids, as investors are still focussed on a potential U.S. interest rate hike. Greece has now become the first developed economy to miss a payment to the International Money Fund.

The market was affected by comments from a top central central bank member who said that The Federal Reserve is on track to raise interest rates this year, with September still “in play”, despite growing market volatility and anxiety in the wake of Greece’s debt default.

James Bullard, St. Louis Fed President, shrugged off the impact of Greece’s economic problems and said the Fed will remain data dependent on its view about when to raise rates. However, Mr. Bullard, does not currently hold a voting role on the monetary-policy setting Federal Open Market Committee and therefore his bark is worse than his bite.

In late morning European trading gold is up 0.04% at $1,172.70 an ounce. Silver is off 0.45% at $15.63 an ounce and platinum is up 0.56% at $1,081.00 an ounce. Palladium rose over 3% to a session high of $700 an ounce.

About the Author
Stephen Flood is a director of Ireland-based GoldCore.