Gold currently not a safe haven

The sell-off on the commodity markets is not leaving the precious metals unscathed either. Base metals are weighing above all on precious metals with an industrial character, which find themselves under considerable pressure. Gold has also been affected, however, and is falling sharply. This morning it has dropped to four-month lows of $1,145 per troy ounce and €1,040 per troy ounce respectively. 

"In view of the existing risks and crises, we find it difficult to understand why gold should be so weak in the current market environment. Evidently the yellow precious metal has seen its reputation as a safe haven seriously damaged. The gold price could be further dampened this evening if when published the minutes of the US Federal Reserve's latest meeting were to suggest - contrary to previous announcements - that an interest rate hike might take place sooner after all", says Commerzbank.

The Greek debt crisis at least has lost some of its sting even if the cliff-hanger situation is set to continue for the time being until this Sunday's crucial EU summit. The price is only likely to start moving again once a solution emerges - either a new bailout in the billions, or a Grexit.