Gold stabilises amid Greek dilemas

The failure to make progress in Greek debt negotiations elevates the risk of a default on the €3.5bn that is owed to the ECB on 20  July.

A default on that bond would almost certainly lead to the emergency liquidity assistance (ELA) being switched off and throw Greek banks into an untenable position of ‘Grimbo’.

Gold has surprisingly not reacted to the events but that could change as worst-case scenarios crystalize. Oil inflows reach the highest for 14 weeks, with ETF securities long oil ETPs receiving $49.3m of inflows last week.

Agricultural commodities have clearly been outperformers in the past week, and as the strengthening El Niño weather pattern changes growing conditions, we believe agricultural commodities will continue to offer investors strong opportunities.


Nitesh Shah is associate director Research at ETF Securities

Jonathan Boyd
Editorial Director of Open Door Media Publishing Ltd, and Editor of InvestmentEurope. Jonathan has over two decades of media experience in Japan, Australia, Canada and the UK. Over the past 17 years he has been based in London writing about funds and investments. From editing the newsletter of the Swedish Chamber of Commerce in Japan in the 1990s he now focuses on Nordic markets for InvestmentEurope. Jonathan was awarded Editor of the Year at the Professional Publishers Association (PPA) Independent Publisher Awards 2017. Shortlisted for the same in 2016, he was also shortlisted in 2017 and 2015 for the broader PPA Awards category Editor of the Year (Business Media).

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