Silver price inches up as investors eye Greek referendum

No rush to safe havens despite contagion fears

Silver price inches up as investors eye Greek referendum

Stock and commodities markets were mostly muted today, due to the 4th of July holiday in the US and investor wariness ahead of the upcoming referendum in Greece on Sunday.

“It looks set to be a quiet day given that the US will be celebrating Independence Day and the rest of the market will be in a holding pattern ahead of Sunday’s Greek referendum,” Jim Reid of Deutsche Bank said as quoted by The Wall Street Journal.

Silver futures for September delivery on the COMEX division of the New York Mercantile Exchange had gained 0.48 percent to $15.637 per troy ounce as of 13:54 BST today, reversing some of the losses over the past few days. The contract closed the month of June for a seven percent loss.

Sunday’s vote in Greece will have far-reaching ramifications for Greeks, the Eurozone and the entire EU.

However, despite there being no ideal solution with regard to the Greek issue and its potential impact on the Union, investors were apparently not in a hurry to seek safe havens investments, such as precious metals.

"There is still confidence that there will be a deal at the last minute, and if that is not the case, that the ECB (European Central Bank) will step in and make sure there is no contagion," ABN Amro analyst Georgette Boele said as quoted by Reuters earlier this week.

In addition to Greece’ referendum, investors were also eyeing next week’s release of minutes from the Federal Reserve’s latest monetary policy meeting. Investors will be looking for further indications as to Fed’s timing in regards to an upcoming rate hike.

Some analysts claimed that yesterday’s below-par payrolls data for the month of June may delay any interest rate rise. Nonfarm payrolls were logged at 223,000, slightly below the forecast of 230,000. More importantly, last month’s reading was down from 280,000 to 254,000.

"We don't need many more numbers for the Fed to see that a September rate hike will be too early," Saxo Bank senior manager Ole Hansen commented.

As of 14:49 BST, Friday, 03 July, Silver's price is $15.64.

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