Los Angeles CA, July 3 (Tangible Investments) - by James O’Dell - Gold consolidated recent gains on Wednesday, adding a modest $0.70 or 0.05 percent to close at $1,327.20 an ounce while investors await a raft of key economic data that will include the early release of the U.S. non-farm payrolls and unemployment reports on Thursday due to U.S. markets being closed for Independence Day on Friday. The price of Silver advanced $0.10 or 0.48 percent to close at $21.15 an ounce, while the Gold/Silver ratio dropped to 62.75.
In the meantime, the euro has fallen from its six week high against the dollar ahead of the European Central Bank's (ECBs) monetary policy meeting on Thursday. Investors are bracing for the possibility of increased volatility that may accompany the ECB rate decision and Governor Draghi’s press conference that follows.
"If (ECB) President Mario Draghi does open the door further to the prospect of Federal Reserve-style asset purchases or warn about an overvalued euro, the single currency could become vulnerable to renewed selling," said Omer Esiner, of Commonwealth Foreign Exchange.
In Ukraine, Russia’s Prime Minister Dmitry Medvedev on Wednesday warned of a “full-scale” gas crisis developing between Moscow and Kiev now that Gazprom has refused to supply gas to Ukraine over unpaid bills. “Ukraine is not paying for gas. The debt is enormous. They take gas from underground storages. By autumn there will be a full-scale gas crisis,” wrote Medvedev on Facebook.
Meanwhile, Jeff Kilburg of KKM Financial, likes what he is seeing in the Gold market.…”Now all of the sudden there’s an inflation play potentially, there’s geopolitical risk, and the third head of this monster which no one has talked about and hasn’t been deserving of talking about for quite some time is the safe haven trade,” says Kilburg. “…Gold is going to go higher. Thnically I like it as well.”
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