By Paul Ploumis 02 Jul 2015 Last updated at 03:14:36 GMT
(Kitco News) - While some commodity analysts have noted that the gold market hasn’t benefited from the ongoing Greek financial crisis as the price have continued to slide and remain near a three-week low, one analyst says it is important to shift your perspective .
Jessica Fung, commodity analyst at BMO Capital Markets, said that while gold hasn’t befitted from the crisis, it has helped support the market. She notes that gold is trading about $30 below the key psychological level of $1,200 an ounce.
“That is really nothing,” she says. “You should look at it this way: if Europe wasn’t close to falling apart where would gold prices be right now?”
She says she would expect gold prices to be significantly lower without the European problems as all the market’s attention would be focused on an eventual Federal Reserve rate hike.
August Comex gold futures last traded at $1,169.30, down $2.50 on the day.
Courtesy: Kitco News