Gold in demand due to high risk aversion

Gold showed itself to be solid as a rock last Friday in a market environment characterized by high levels of risk aversion and rose in price to a good $1,140 per troy ounce, a level at which it is still trading this morning. 

In Euro terms, gold exceeded the €1,000 per troy ounce mark once again because the US dollar appreciated somewhat at the same time. Alexis Tsipras' Syriza party achieved a surprisingly resounding victory in the parliamentary elections in Greece yesterday. 

"Together with his coalition partner, Tsipras is now likely to enter into tough negotiations with the country's creditors again in a bid to soften the austerity and reform conditions as much as possible. It is unlikely that the Greek crisis will flare up again because the country's creditors appear to have virtually limitless patience", says Commerzbank.