Gold prices jump on Greek rescue plan news
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By Jeremy Holcombe Contributing writer for Goldco Direct and End the Lie It seems that almost daily now the price of gold is being directly affected by what news (good or bad) that comes out of the Eurozone regarding Greece, especially since the March 20 th deadline to accept a bailout deal is fast approaching. Gold prices jumped again today as news of the rescue plan in Greece continued to gain steam. It seems a second bailout package for Greece has been approved and that news sent gold spiking up. Gold for April delivery rose $30.20 to $1,756.10 an ounce at the Comex division of the New York Mercantile Exchange. Gold price has traded as high as $1,757.60 and as low as $1,727 an ounce while spot price of gold added $21.20. This is the third day in a row that gold has jumped up, and you can possibly look for that trend to continue throughout this week, as a bailout deal with Greece becomes more and more apparent. "Now that the red wax seal is drying on the 130 billion euro package and the many strings that are attached to it, the markets can focus on the remaining troublesome items -- banking sector problems and Greece's own inability to avoid coming back to knock on the EU's door for more assistance, at a later date," said Kitco's Jon Nadler. "There appears to be little doubt that in order for the country to bring debt down to 120% of GDP such further help will be necessary. As things stand right now, if Greece is lucky, that ratio might get down to 129% by -- 2020 or so." Basically, what he is saying is that while Greece may sign this bailout deal – a bailout deal that is absolutely needed to avoid bankruptcy for the country, there will still be a lot of work to do over the next several years in the Euro sector. This will be a nice start for the country, and it will ease fears from investors and markets around the world that have money tied up in Greece, but the path to a better economic standard in Greece will take several years. Look for gold and silver to continue to respond positively to the incoming news from Greece. When the deal is signed, that may be exactly what gold and silver need to plant themselves in and make a run at $2,000 per ounce and $50 per ounce respectively. The above article is for informational purposes only and is not a solicitation by End the Lie or Goldco Direct . It is the commentator’s opinion only and not intended for investment recommendations, and does not necessarily reflect the views of End the Lie or Goldco Direct . Any references to outside sources are believed to be accurate. Past performance is not a guarantee of future results. All commodities involve risk. Investors should consult their financial adviser before making any investment decisions.