Gold was down but not out after Monday’s news that European leaders had agreed to give Greece fresh bailout loans. The metal managed to stay in its recent range and hold above last week’s low of $1,145.90, based on the Comex August gold futures contract. ‘It’s a lot of short-term news coming out of Greece,’ said Frank Holmes of U.S. Global Investors in an interview with Kitco News. Holmes said that gold managed to maintain its rebound from a three-month low – and that the economic risks in China and Greece will prompt the Federal Reserve to delay raising interest rates. Kitco’s Spot Gold Price was last quoted at $1156.00 an ounce, down $6.80. Holmes said he is paying attention to other matters besides Greece. Topping the list is the recent quarterly derivative report from the Office of the Comptroller of the Currency (OCC). Holmes said that in his reading of the report, Citigroup has ‘cornered the commodity derivatives complex.’ ‘Their notional exposures soared by 1,260 percent, and $3.9 billion to $53 billion in one quarter,’ Holmes said. ‘The lack of corresponding movement in the spot price of gold when the derivatives book is cornered creates an uncertainty of great magnitude,’ he explained.
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