Gold falls 1.6% despite a surge in ETF demand
Duncan Richardson, News Editor
10 May 2016, 9:48 a.m.
After a strong start to the year the gold price fell back 1.6% yesterday on the news the Greek Parliament had agreed yet another reform package. The Greek government can now tap their fellow Eurozone members for more funds and stop the country defaulting on their sovereign debt.
The reforms put forward by Greek premier, Alex Tsipras, will increase the tax burden on the rich and reduce social spending on the poor.
Thousands demonstrated in Parliament Square, but yet again the will of the people was ignored. The Greek economy is in a mess and the social fabric of the country is being torn apart.
After briefly trading above $1,300 per ounce last week the price has now retreated to $1,266.08 per ounce as investors locked in profits. Demand from exchange traded funds remains robust, with 39 tonnes being added in the last week.
With the U.S labour market showing signs of weakness and PMI data pointing to a general slowdown in the global economy many analysts are predicting the gold price will once again break through the $1,300 barrier.