Gold Dips Below $1,200 As “Grexit” Concerns Ease
On Friday, euro zone finance ministers drafted an agreement that could see Greece’s financial rescue package extended; however, there are still significant hurdles to any agreement, with Greece’s biggest creditor, Germany, demanding “significant improvements” to reform commitments by the leftist Greek government. The draft comes as the expiration data for the 240 billion EU/IMF bailout program approaches; if an agreement is not reached over the next week, this would likely see Greece exit the currency, sending financial markets (particularly in Europe) into turmoil. In response, the price of gold fell below $1,200 per ounce, down 0.4% for the week before rising slightly again and finishing at $1,201. Other precious metals including silver (down 7%), platinum (down 3.8%) and palladium (down 1.5%) also fell during the week, finishing at $16.21, $1,164 and $780 per ounce respectively. Base metals also had a tough week, following continued negative economic news from China, which included a fifth straight monthly decline in housing prices in January. Copper, nickel, lead and zinc each finished at $2.59, $6.30, $0.80 and $0.92 per pound respectively. WTI crude prices experienced high volatility during the week, falling 5% and finishing at just above $50.00 per barrel on Friday. Finally, the UxC Broker Average Price (BAP) of uranium rose slightly during the week, finishing at $38.38 per pound on Friday.
Here’s an overview of what’s in the Dig this week:
Click here for the full report.
Important Information and Legal Disclaimers
All prices are in C$ unless noted
All prices are in C$ unless noted
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