Commodities Update 4

Commodities Update 4

30 June 2015

Important legal information

Gold climbs as Grexit becomes more likely / Oil price drops due to oversupply

Gold rose as Greek introduced capital controls and shut banks for a week, casting serious doubt on the country’s future euro membership. Market uncertainty led investors towards safe haven investments, e.g. gold and other precious metals. Demand from Greek customers for Sovereign gold coins was double the five-month average in June, the U.K. Royal Mint said in an e-mailed statement. Customers globally added 1.4 metric tons of gold to their account, the biggest increase since 2012. Thus, Greek investors seem to have invested large amounts in gold in order to circumvent the recently imposed capital controls.

Oil dropped to the lowest level in more than two months. The potential Greek default weakened the Euro, as a stronger dollar makes it more expensive for international buyers to purchase dollar-denominated crude. Meanwhile, analysts report, that Iran and western nations have made progress in negotiations that could put Iranian oil back into circulation, which could aggravate the existing oversupply, that has sent prices down since last summer.

 

 

02/10/2022 18:09:50