Greek debt talks collapse, banks close, capital controls in place
and gold barley moves. The initial reaction on the Asian open was a
quick $15 rise in gold and a 2% drop of the Euro against the US$. There
is a sense that a last-minute deal may still be pulled off, but the
general mood is one of who cares. I would suggest that there may be
more nervousness than is suggested by gold’s price action and the risk
to traders lies in more upside pressure. With holidays in Canada and a
shortened July 4th week expect high volatility.
By Peter Hug
Global Trading Director
Kitco Metals Inc.
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