Gold price advances to 3 month high on potential Greek exit
By Peter Walden, News Editor
18 May 2015
The gold price advanced £16.50 per ounce last week as concerns rose that Greece may exit the euro and the U.S. may delay any interest rate rise. Priced in U.S. dollars gold is now trading at a three month high. The silver price rose 7.77% over the week and now trades at $17.70 per ounce.
The gains come as markets start to anticipate a possible Grexit. Over the weekend a leaked IMF document said the Greek government has no chance of meeting its sovereign debt obligations unless the country taps into further bailout funds.
The IMF is demanding the Greek government implement a number of reforms before any further funds are released. Greek Prime Minister Alexis Tsipras is reluctant to go back on pre-election promises and introduce further austerity, hence the stand-off is likely to continue.
The gold price was also boosted after Chicago Fed President, Charles Evans, called for the New York Fed to delay an interest raise until 2016. The U.S. economy appear to be stalling with Q1 GDP growth likely to be revised down to below zero. A weakening U.S. dollar has made gold cheaper in sterling.
Gold is currently trading at £783.69 per ounce, silver £11.26 per ounce, platinum £745.67 per ounce and palladium £505.30 per ounce.