LONDON (Commodity Online): Comex gold has hit its highest level of the week as a risk-on mood hits markets generally after reports that Greek leaders have reached a deal on reforms and austerity measures intended to avoid a default, said FuturePath Trading.
The news also boosted the euro against the dollar, which tends to help gold.
“Greece has reached a deal, so they are not going to fall apart or default yet. There’s definitely some questions whether Greece can adhere to these austerity programs and whether this is going to fly with the Greece populace—probably not,” FuturePath said.
Gold currently is a trade in which participants are often quick to exit positions.
“I don’t know that the nervousness is actually all gone from the markets. The rally has not done much technically with April futures still below formidable resistance around last week’s high of $1,765.90 an ounce.” FuturePath added.
As of 9:55 a.m. EST, April gold was $18.20, or 1.1%, higher at $1,749.50 an ounce. March silver was up 58.1 cents, or 1.7%, to $34.285.
