LONDON (Commodity Online): Concerns about Greece and Portugal are underpinning demand for gold, said Commerzbank in a research note.
According to Commerzbank, gold defied a downward trend in commodity prices and a firmer U.S. dollar Tuesday. The metal is higher again so far Wednesday.
“There has still been no breakthrough in negotiations between the so-called Troika and Greece on debt restructuring, and the tug-of-war is therefore continuing,” they added.
At the summit at the beginning of the week, EU (European Union) heads of state and government did backtrack from their claim that Portugal will return to the capital market as early as next year through its own efforts, which raises the question of whether the country will, after all, require further financial assistance. The sovereign-debt crisis will thus continue to preoccupy the markets for some considerable time yet and should support the gold price,” Commerzbank concluded.
