Gold price treading water despite escalation in Greece crisis

The price of gold has dipped below $1,200 per ounce again today, prompting some to ask whether a further escalation of the crisis in Greece would provide much support to the precious metal after all.

The relatively lacklustre performance of gold in recent weeks should not be interpreted as an indication that gold has lost its safe haven appeal. The true test of that will only come when risk appetite falters again. 

"We continue to expect an escalation of the crisis in Greece to be one of several factors (including a recovery in demand from households in China and India) that lifts the gold price to $1,400 per ounce by the end of the year." - notes Capital Economics in a report