The gold price is little changed today despite talks breaking down between Greece and their international creditors. The Greek stock market is down 5% today following a 5.9% drop on Friday with Greek banks on average falling 10% this morning.
More worryingly bonds yields throughout Europe are rising as traders fear a Greek exit from the Eurozone will cause contagion in the debt markets.
The IMF is demanding the Greek government repay 1.5 bn euros of loans by the end of the month and introduce further austerity measures. If they fail to do so the Greek government will not receive a further 7bn euros bailout. If additional funds are not forthcoming Greece will official default on its debt obligations.
The latest talks broke down over weekend after Greece and the IMF failed to reach an agreements over VAT and pension reforms.
Gold is currently trading at £762.10 per ounce, silver £10.34 per ounce, and palladium £474.29 per ounce. Platinum is trading under £700 per ounce for the first time in 6 years.