Despite US Dollar strength, gold prices remained relatively steady above the $1,100 levels as traders wait to see how the Greek sovereign debt issue will play out. Later this week we expect to see some clarification on the bond issue from Greece, from which markets may then take some directional bias, but at present there appears to be consolidation at $1,100.

Market News

1. The Australian Central Bank raised interest rates to 4% this morning, with the RBA claiming that their economic growth predictions are back to normal
2. Talk of a German/French bailout for Greece continues, however Angela Merkel still insists that the Greeks still need to reduce their deficit
3. The Euro has hit nine and a half month lows against the US Dollar as confusion reigns over the state of the Greek situation
4. Please be aware that the Beige Book is scheduled to be released tomorrow

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