Gold prices far from its role as a safe haven despite the economic tensions

Gold prices traded in the middle of the European trading at $ 1172.03 per ounce after falling price yesterday to its lowest level in three weeks due to the recovery of the US dollar index strength in the currency market. There is no doubt that the attention directed towards the Greek crisis with the end of the payment of the IMF dues deadline With the approach of the referendum day Sunday, July 5th, which would determine the decision of the Greeks either rejected European proposals austerity policy which is pursued by the previous government or vote to accept the European proposals and the survival of Greece in the euro zone .

Gold did not play a role as a safe haven in these times, in spite of the failure and the inability of Greece formally day Tuesday, June 30 to pay their dues to the International Fund cash of 1.6 billion euros, we have seen a decline in the price of gold that day to a record drop Npsh -0.61 percent at the same time increased where the US dollar index is about 0.75%. This shows two points, the first of which the market buying decision confirms the US dollar as a currency More robust and powerful, while the second point indicates that there is no panic in the market as it was expected in previous weeks about a Greek exit from the euro zone. It is true that a Greek exit euro is in itself an important event, but if we want to speak economically, Greece accounts for less than 2% of the European Union and the exit is not economically affect significantly, the most important effect will be on the issue of confidence in the euro currency, and the question remains if exited Greece from the euro zone is it possible to see Spain or Italy also graduated from the region in the event of occurrence of any problems with it? It is worth mentioning that Spain and Italy form a large part of the EU, and if one of these countries out of the region that will not pass unnoticed. So far we have not seen in the market concerns about this issue, which not translated Iqbal traders on the market gold, considered a safe haven.

Gold prices – the percentage of purchase on the XAU / USD about 79% centers, traders yesterday entered into a purchase centers, and was open purchase centers for traders 77%. Longs rose 5.1% than yesterday and 17.3% above the levels of last week. Centers sales declined 6.5% than yesterday and 20.1% below the levels of last week. The total open positions for traders 2.4% more than yesterday and 7.7% above the monthly average. We use speculator confidence index Reverse indicator, and the fact that the majority of traders are buyers that refers to the possibility of the low price. Market sentiment has become more optimistic compared with yesterday and last week. Price trends in the recent market sentiment bearish give a look.

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