Commentaries

Gold Prices hovered just below $1760 per ounce during London's Wednesday morning trading, after a rally in Tuesday's US session saw gold gain 1.3%. Silver Prices softened slightly but held above $34 per ounce - having through that level on Tuesday following the Greek bailout announcement. Stocks and commodities edged lower this morning, while government bond prices gained. Gold Prices "[ran] into sell stops at the $1760 level," says one gold dealer here in London.

The odds of conflict with Iran continue to rise as it appear talks that could be the last chance to stop events from spinning out of control seem to be dead on arrival. Oil prices which really looked beyond the symbolic Iranian cut of oil to the UK and France, seemed to start to focus a bit more on latest deal to save Greece and a surging stock market. Yet oil already up got another dollar spike when Bloomberg News reported that Iran’s foreign Minister basically said that talks about Iran’s nuclear program were off the table. Many had hoped that the resumption of talks between the International Atomic Energy Agency and Iran was a possible way out of this crisis. Those dreams were seemingly put to rest when a spokesman for the Iranian Foreign Ministry Ramin Mehmanparast, said that when it comes to Iran’s “right to peaceful nuclear energy there is nothing to negotiate.” So much for the olive branch, it seems the tree just fell down.

Crude oil rose to significant highs amid concerns on global oil supplies where it reached to the highest for more than 7 consecutive months, as the IEA announced that talks with Iran on its nuclear program have reached a failure, which increased the possibilities of a military intervention.

Precious metals advanced sharply yesterday as investors tend to hold more metals against the high level of uncertainty, where investors were still weighing the Greek second bailout package and the private sector involvement in the deal along with the unclear European Central Bank role in fighting back the debt crisis.

Gold Bullion prices jumped to $1747 per ounce Tuesday lunchtime in London - 1.3% above last week's close - as US Markets opened for the first time since Friday to the news that European leaders have reached an agreement on Greece. Silver Bullion also spiked, hitting $33.97 per ounce - 1.9% up on the start of the week. European stock markets by contrast drifted lower in Tuesday morning trading, while the Euro gave back most of the gains it made against the Dollar immediately after the Greek deal was announced. Commodities edged higher, while US Treasuries fell.

Oil prices surged on what can be best described as a panic attack. Oil prices surged as reports that an attack on Iran may be imminent or if you prefer, on reports that Iran cut off oil supply to Europe. Either way it caused the market to price in some scary scenarios as European and Asian buyers continued their panic crude oil buying.

Greece has finally secured the second bailout package worth 130 billion euros to avoid default previously projected on March 20, raising optimism in the market and spreading relief across the board. However, investors are still weighing the Greek debt deal and the possibility that Greece may not be able to commit and implement the required reforms in the right time and therefore markets are split now whether the nation will handle the debt and cut the deficit or it will not reduce the deficit and the economy will remain weak in 2020 with 160% debt-to-GDP ratio.

Crude oil rose significantly in the past day reaching so high levels as many positive factors are providing the commodity with an upside momentum, as it benefitted yesterday from optimism wave in Europe after finance ministers approved to give Greece 130 billion Euros, along with the effect from Iran which considering to cut more oil exports to EU.