by Ben Traynor<\/p>\n
BullionVault<\/a><\/p>\n Monday 04 July, 08:00 EDT<\/p>\n <\/strong><\/p>\n Gold Rallies, Greeks Lose Sovereignty for “Eurozone Expertise”, Reports Claim India May Settle Oil Debts with Gold<\/strong> Stock markets gained and commodities were mixed after news that a plan to roll over Greek sovereign debt could be declared a default.<\/p>\n Silver prices<\/a> meantime rose to $34.22 per ounce \u2013 1% up from where they ended last week.<\/p>\n “Precious metals have been trading as a safe haven asset rather than a commodity,” notes one Hong Kong bullion dealer, adding that there was a “decent amount” of physical\u00a0gold bullion<\/a> bought during Monday’s Asian trading.<\/p>\n “Seasonal trends tend to be positive in the third quarter for gold,” adds Stefan Graber, analyst at Credit Suisse.<\/p>\n “This current dip offers entry opportunities for gold.”<\/p>\n “Market players are using the opportunity to get gold at a cheap price after the sharp fall last Friday,” agrees Daniel Briesemann, analyst at Commerzbank.<\/p>\n “The debt crisis in Greece has eased somewhat…[but] the problem is still there, the EU and Greece have only gained some time.”<\/p>\n Ratings agency Standard & Poor’s has said it could place Greek debt in “selective default” if French proposals to roll over Greek debt are put into practice.<\/p>\n Under the proposals \u2013 outlined in a memo last month from the F\u00e9d\u00e9ration Bancaire Fran\u00e7aise \u2013 holders of Greek bonds would have two options. The first would see them receive 30% of their money, with 50% of what they are owned going into 30-year Greek bonds and 20% into zero coupon bonds held in a special purpose vehicle.<\/p>\n The second option is simply to roll over at least 90% of owed funds into new 5-year bonds.<\/p>\n “It is our view that each of the two financing options…would likely amount to a default,” said a statement from S&P on Monday.<\/p>\n Over the weekend the European Union approved the release of \u20ac12 billion to Greece as part of last year’s bailout, due to be paid later this month.<\/p>\n Greek sovereignty will be “massively limited” said chairman of the Eurozone finance ministers, Jean-Claude Juncker, after the payment was approved.<\/p>\n “One cannot be allowed to insult the Greeks. But one has to help them. They have said they are ready to accept expertise from the Eurozone.”<\/p>\n Renewed concern over the Eurozone’s debt problems could see\u00a0gold bullion<\/a> prices “perform particularly well” reckons Standard Bank commodities strategist Marc Ground.<\/p>\n However, exchange traded products linked to commodities saw record outflows in May, with investors withdrawing $3.8 billion, research by Barclays Capital shows.<\/p>\n Silver ETPs saw the largest outflows, with investors withdrawing $1.7 billion. The silver price<\/a> set at the daily\u00a0London Fix<\/a> dropped 21% over the course of May.<\/p>\n Gold ETPs, meantime, saw outflows of $0.9 billion over the same month. At the end of May, the\u00a0gold price<\/a> on the\u00a0London Fix<\/a> was only a Dollar above where it had ended the previous month.<\/p>\n Meantime in Delhi, Indian press reports that the country could see oil supplies from Iran halted<\/a> if it fails to make overdue payments, according to press reports over the weekend. US sanctions against Iran have made paying for oil imports difficult.<\/p>\n Iran refuses to be paid in Rupees, leading to speculation in the Iranian media that India might make the payments in\u00a0gold bullion<\/a>.<\/p>\n Ben Traynor<\/p>\n BullionVault<\/a><\/p>\n Gold value calculator<\/a> |\u00a0\u00a0 Buy gold online at live prices<\/a><\/p>\n Editor of Gold News<\/a>, the analysis and investment research site from world-leading gold ownership service BullionVault<\/a>, Ben Traynor<\/strong> was formerly editor of the Fleet Street Letter<\/em>, the UK’s longest-running investment letter. A Cambridge economics graduate, he is a professional writer and editor with a specialist interest in monetary economics.<\/p>\n
\nTHE WHOLESALE<\/strong> market price of\u00a0gold bullion<\/a> rose to just under $1497 per ounce Monday morning in London \u2013 0.7% up on last week’s close \u2013 before easing back around lunchtime.<\/p>\n