Gold was unable to profit from the weaker US dollar yesterday and even fell for a time to nearly $1,200 per troy ounce. This morning it is trading only slightly higher. In euro terms, gold consequently fell somewhat more sharply to €1,080 per troy ounce. So far, the summit meeting of heads of state and government in Riga has not made any progress as far as the Greek debt crisis is concerned.
Talks between German Chancellor Merkel, French President Hollande and Greek Prime Minister Tsipras have failed. Time is running out if any breakthrough is to be achieved. Market participants should be increasingly focusing on this and thus driving up demand for gold. Inflation figures for April will be published in the US this afternoon.
The higher the (core) inflation rate turns out to be, the sooner the US Federal Reserve is likely to be willing to raise interest rates. This could put pressure on the gold price during the course of the day.
