Futures Roundup
Greece Leaving Euro a Mixed Bag for Gold
Fundamentals
Gold traders have been digesting the news that Greece will be leaving the Euro on June 18th. The possibility of this scenario has been hanging over the market for over a year, so it shouldn't be a huge shock. It is mixed news for Gold traders. On one hand, it could send the Euro lower and result in a stronger Dollar, which would likely be negative for Gold. Even though the EU parts ways with one troubled economy, countries like Spain, Italy, Ireland and Portugal remain, so the EU is far from being out of the woods. Demand for Gold as a safe haven may pick up, as even "safe" currencies like the Dollar are plagued with their own problems.
Technical Notes
Gold traders have been digesting the news that Greece will be leaving the Euro on June 18th. The possibility of this scenario has been hanging over the market for over a year, so it shouldn't be a huge shock. It is mixed news for Gold traders. On one hand, it could send the Euro lower and result in a stronger Dollar, which would likely be negative for Gold. Even though the EU parts ways with one troubled economy, countries like Spain, Italy, Ireland and Portugal remain, so the EU is far from being out of the woods. Demand for Gold as a safe haven may pick up, as even "safe" currencies like the Dollar are plagued with their own problems.
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About Mike Zarembski
Born in the grain pits of the Mid-America Commodity Exchange (MidAm) in the early 1990s, Mike's futures career soon shifted to the offices of TD Waterhouse in 1999, followed by Xpresstrade in 2002 and eventually optionsXpress in 2007.
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