The precious metals continued to hold ground within recent trading ranges Friday as players monitored the ongoing debt negotiations between Greek and Eurozone officials as Greek officials agreed to make further cuts in order to gain approval for a €130bn bailout package, boosting risk sentiment over the day. Gold settled the day down 0.2% having traded between $1717-36, silver was off 0.7% while the PGMs closed mixed with palladium down 1% while platinum posted a moderate 0.4% gain.

Tame inflation data and suggestions from Italian PM Mario Monti, German Chancellor Angela Merkel and Greek PM Lucas Papademos that finance ministers are likely to approve the Greek bailout at a meeting in Brussels today helped bolster risk markets. Equities closed positively with the Eurozone Stoxx 50 Index up 1.25% while the Dow and S&P500 posted more modest 0.3% gains. The euro was up 0.1% against the dollar and 1% versus the yen.

Risk markets have seen a positive start this morning, bolstered by the decision from the Peoples Bank of China cut its reserve requirement for banks by 50-bps over the weekend. Also over the weekend Chinese and Japanese officials pledged their commitment to help resolve the Eurozone debt crisis but added European countries need to do more to help themselves first. China’s Vice Premier Wang Qishan told a press conference “We shared the view that Europe needs to make more efforts to create a bigger firewall.” “We also agreed to act together as the IMF will probably ask the U.S., Japan and China” to help boost its lending capacity. At the time of writing the Nikkei was up 1% while the MSCI Asia Pacific Index has given back its initial gains, currently trading flat; EUR/USD is up 0.5% from Fridays closing level, EUR/JPY is up 0.7%.

Data overnight has shown Japan’s Trade deficit widened slightly last month from JPY- 0.57 trillion to 0.61trl due to the combination of yen strength and weak global demand. No data of any significance is scheduled for the rest of the day with US markets closed for Presidents day celebrations; however Eurozone debt talks will continue to dominate with EU officials meeting today to decide whether Greek finance leaders have done enough to qualify for the next tranche of financial aid.

The rise in risk and softer dollar have given the precious metals an initial lift this morning with the complex up as much as 1% from Fridays closing levels. Thin cautious trade will likely see the range trade continue with players closely monitoring the Eurozone debt negotiations for the next leg for risk direction.

• Wall Street all in on further gains for gold, Main Street grows more bullish for next week’s price action   (2024-10-19 10:12:59)
• Gold shines as ultimate safe-haven asset, set to hit $3,000/oz by 2025 – Bank of America   (2024-10-19 10:07:32)
• Gold and silver to rally through the end of 2024, copper likely to lag – Prosper’s Scott Bauer   (2024-08-15 06:23:01)
• Wall Street experts see gold gaining on renewed recession fears, Main Street bullishness not far behind   (2024-08-04 16:15:53)
• Phố Wall chứng kiến ​​đà tăng giá vàng mới vào tuần tới, tâm lý lạc quan của Phố Main tăng lên   (2024-07-27 17:29:24)
• Wall Street sees renewed momentum for gold prices next week, Main Street’s bullish sentiment increases   (2024-07-27 17:26:59)
• Wall Street is balanced and cautious on gold next week, Main Street remains optimistic about price gains   (2024-07-20 08:49:41)
• September rate cut and Trump policies are boosting gold demand – FX Empire’s Ali   (2024-07-19 05:12:10)
• Gold price will average $2,500 per ounce in Q4 2024 as bull case remains intact despite sharp gains – JPMorgan   (2024-07-18 11:18:51)
• Wall Street sees green lights for gold next week; Main Street jumps back on the bullish bandwagon   (2024-07-06 04:25:55)