Gold is still trading at around $1,180 per troy ounce as the new week gets underway and is thus continuing to ignore the ever escalating debt crisis in Greece.
New negotiations between the Greek government and the EU at the weekend were abandoned without any agreement being reached because - according to a European Commission spokesperson - differences were too wide to breach. Talks with the Eurogroup are scheduled for Thursday, though any breakthrough appears questionable after yesterday. This brings the possibility of national bankruptcy at the end of the month ever closer for the highly-indebted country.
Given the poor performance of gold and silver prices, money managers are clearly losing their patience and betting increasingly on falling prices. According to the CFTC's statistics, they cut their net long positions in gold by 39% to a four-week low of 37,600 contracts in the week to 9 June, this being almost solely the result of an increase in short positions, notes Commerzbank.
