Gold and silver trading relatively range-bound

After initially Gold price drop, yesterday saw gold and silver trading relatively range-bound. PGM managed to get some lift at the start of New York trading hours, although momentum did not carry over into Asian markets. This morning we’ve seen little interest in the complex, despite a relatively steady dollar and indications of rising risk aversion (Asian equity markets ended down and European stock indices are currently trading in the red).

After Greek leaders postponed yesterday’s meeting, markets have grown anxious that agreement and the resolve to adopt the required austerity measures is lacking. The EU has suggested a deal should be reached by 15 February to ensure that the necessary arrangements are made before Greece makes a critical bond payment on 20 March. Eventually this concerns should see renewed interest in gold. However, any upside could be dampened if the dollar should push higher owing to the same concerns.

Gold support is at $1,705 and $1,695. Resistance is $1,732 and $1,749.