Gold price action
This series provides an analysis of gold prices and market fundamentals. For an in-depth look at gold and related companies, sectors, and drivers, please refer to our Gold ETFs page.
COMEX-traded gold futures for June delivery rose marginally by 0.19% on May 18, 2015, and closed at $1,227.60 per ounce. Gold prices extended their rally on Monday—led by the consensus of a delay in the interest rate hike by the Federal Reserve and uncertainty in Greece
Greece default risk
The conflict of interest between Greece and its creditors is causing a delay in concluding the bailout program for Greece. The country needed to present fiscal and economic reforms in line with the Eurozone premiers’ expectations. This will save Greece from defaulting as it nears the expiration of the current bailout by the end of June 2015. This uncertainty supported gold prices. Investors move towards safer investments during uncertainty.
The consensus of a delay in the interest rate hike by the Federal Reserve also supported gold prices yesterday. The improving jewelry demand from India will also support gold prices in the near term.
Gold prices increased for the fifth time in the last ten days. During the same period, gold prices rose by 0.88% more on the average up days than on the average down days. June gold futures performed poorly across all of the commodities in yesterday’s trade. Gold prices gained by 0.93% YTD (year-to-date)—led by the weak dollar and increased demand from India.