The Greek crisis has not given any boost to the safe-haven assets so far, however that may change soon.
According to Capital Economics, the risk of a Greek exit from the euro area will help push gold prices to $1,400 an ounce by the end of the year.
“The markets still appear to be anticipating some sort of last-minute deal or accounting tricks to rescue Greece,” Julian Jessop, head of commodities research at Capital Economics, wrote in a research. According to Jessop, even if Greece does default on its debt, that wouldn't necessarily lead to an exit from the eurozone.
He said that Capital Economics is sure that a “further
escalation of the crisis in Greece” will support the yellow metal.
Believing that the country is a“‘special case’ and that other members are very unlikely to follow [Greece] out of the door” would be a mistake, he said.
Currently, global risk appetite is still high, as
seen in the strength of equity markets world-wide.
Better-than-expected company earnings helped rally U.S. stocks on Monday and European equities climbed after China cut its reserve ratio to help stimulate the economy.
But when risk appetite falters again, that would be the true test of whether gold has lost its safe-haven appeal, Jessop said.
