TODAYS GOLD PRICE RISES
The gold price traded higher this morning during the Asian trade, as investors look to the safe-haven metal as risk off appetite increases with poor Chinese data and uncertainty over the Greek situation
Spot gold price was last up $4.30 to $1,243.40 per ounce, and silver followed higher as well by three cents to $17.05.
Poor Chinese data released this morning did not help sentiments as well – CPI for January declined to 0.8 percent from 1.5 percent previously, the lowest rate since the end of 2009 and below market expectations of one percent year-on-year. Producer price inflation dropped as well to –4.3 percent from –3.3 percent previously.
In Europe, markets mainly focused on the current standoff between Greece and its European counterparts. There is an increasing probability of Greece leaving the Eurozone as the newly elected Prime Minister Alexis Tsipras take on a hard approach over its negotiations with its lenders.
“The problem with these proposals is that they are falling on deaf ears as far as the Europeans are concerned. This tells us the crisis will likely get worse before it gets better, with the very real possibility that Greece could find itself out of the Euro rather soon,” said analyst Edward Meir from INTL FCStone.
The euro was up at 1.1340 from yesterday’s 1.1322 against the dollar.
In other gold-sensitive news, the Hong Kong Census and Statistics Department reported that China imported a net 59 tonnes of gold from Hong Kong in December, a 36 percent decline compared to the same month in 2013. China does not publish official data for gold trade so the Hong Kong figures provide the nearest indication.
With the Chinese new year coming up, the typical buying season for gold, demand is likely to increase with in January, analysts said.
For the other precious metals, platinum price was unchanged at $1,218 while palladium is lower by $3 at $779 per ounce.
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