"He added that Argentina’s latest default is a low-risk situation compared to European debt crisis that swept through financial markets two years ago. The European Union and the euro means that all the countries are connected and if one country, even a small one, has a debt problem, it can easily impact other nations and balloon into a systemic issue."
Jeffrey Nichols, senior economic advisor at Rosland Capital and managing director at American Precious Metals Advisors, said that a few years ago headlines about Argentina’s default would probably have boosted gold prices but now the market is desensitized. “We’ve heard this story so many times that it has lost its impact,” he said.
George Gero, vice president and precious-metals strategist with RBC Capital Markets, said the news helped to drag down equity markets; gold prices followed because some funds were probably forced to sell their profitable positions to cover their equity market losses, he added.
He said the default could help to push gold prices up next week as the market digests the news and its full impact.
http://www.forbes.com/sites/**promo...argentine-debt-crisis-ignored-by-gold-market/
Add to My Watchlist
What is My Watchlist?