Greek uncertainty drives gold sentiment higher

Photo: Bullion Vault

Greek uncertainty surrounding the euro is fuelling optimism in gold among investors.

The country's economic difficulties have prompted debate among political parties in the run-up to the January elections as to whether Greece should exit the single currency. The economic uncertainty generated as a result has boosted the appeal of precious metals among investors who are seeking a financial afe haven.

The Greek uncertainty arrives as crude oil prices are also falling, which has added to the factors fuelling the attractiveness of gold. Indeed, the US stock market has fallen almost 3 per cent so far in 2015, notes Business Standard. Gold, on the other hand, saw its price increase on Tuesday.

Angel Commodities forecasts that all precious metals will trade higher on an intraday basis: “On the flip side, falling oil prices is reducing the inflation hedge appeal of the yellow metal," adds the company's report.