Australia- Spot gold holds steady as equities take off
(MENAFN- ProactiveInvestors)
Australian equities are soaring in early trade with the ASX SPI 200 leaping 80 points higher to 5512.
Yesterday the market was smashed lower 2% intra-day before an afternoon recovery.
While Greece has been grabbing the headlines and European equities suffering Wall Street help strong last night and only had modest losses.
By the reaction in the Australian market this morning a much bigger fall was anticipated and the yield hunters look to be back snapping up the blue chips.
The impact on Gold has been minimal and much quoted as a safe haven now that the markets have calmed a softer metal price could be expected.
But no.
The yellow metal is holding strong in electronic trading as Asian markets start to open.
Spot gold is currently off less than a dollar at US$1170 an ounce.
But in Australia where the local currency has been weakening the price is still over A$1550 an ounce.
For domestic producers with AISC off circa A$1000 good margins can be made.
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