Gold prices recovering following Goldman Sachs and Greece disruptions
Gold prices spent the first half of the week trending down, from USD$1160/oz on Friday, to Monday’s low of USD$1132. The fall was primarily due to a stronger USD in light of Goldman Sachs’ pending court case and continuing issues around the Greek economy causing markets to become more risk adverse.
Tuesday trading (overnight Tuesday NZST) saw a reversal of the trend with the Gold price climbing back up to USD$1140 on Wednesday morning NZST.
In currency, the Kiwi dollar has sat between USD$0.7200 and USD$0.7050. A strengthening USD has been caused by the move away from risk due to Goldman Sachs and Greece.
Locally, the CPI announcement brought the rate back in overnight. However at the close of US trading it was back over the 0.71 mark. The range has been quite firm for the Kiwi recently so it’s not expected to break out in the short term.
Looking forward, Global G7 and G20 meetings this week will put the attention back on the Yuan vs the USD.
Freight and commodity prices may be in for a bumpy ride, due to eruptions from Mt Eyjafjallajokull which have caused widespread disruption to flights in Europe.
