LONDON (Commodity Online): Comex gold is higher after approval of a European Greek bailout package and higher oil prices, said George Gero, vice president and precious-metals strategist with RBC Capital Markets Global Futures.
According to Gero, the bailout in essence acts as stimulus, he says. Meanwhile, Nymex March crude oil has been as high as $105.44 a barrel since Friday’s close, helped by “saber-rattling” from Iran.
And this, he continues, is inflationary. “So if you drive, if you eat, if you wear clothes, you will see higher prices….And since (U.S.) interest rates are due to stay low for the next couple of years (based on the last FOMC statement), it will be very difficult to fight inflation quickly.”
As of 9:50 a.m. EST, Comex April gold was up $23.10, or 1.3%, from Friday’s close to $1,749 an ounce. The metal has been as high as $1,751.30, and Gero anticipates some chart resistance around the $1,750 region. March silver was 64.9 cents, or 2%, stronger at $33.865.
