Gold exchange traded funds rose fractionally Tuesday morning while bulls attempted to defend bullion’s price at $1,500 an ounce.
Gold has held its ground on sovereign and banking debt risks “in the face of volatile commodity markets roiled by sharp oil price declines and falls in broader commodity prices,” wrote Daniel Wills and Nicholas Brooks at ETF Securities in a weekly report.
“The Greek debt saga and reduced expectations for U.S. rate hikes is keeping gold demand high despite generally weaker sentiment towards many commodities as growth expectations are ratcheted down,” they added.
Silver ETFs also traded higher Tuesday as investors awaited an austerity vote in Greece, while there were reports of violence at some protests. [Silver ETF Rises]
ETF Securities said demand for physical silver is providing an offset to a drop in futures investment. Silver prices fell sharply in May after margins were raised for futures contracts.