In its Tuesday report, Mitsubishi says that recent comments made by Greek Finance Minister, Yanis Varoufakis, regarding the country needing a “bridge agreement” on its debt situation is interpreted to be, “the financial all-clear for which the markets were so desperately waiting.” “The euro bounced, world stock indices rallied, and the bids disappeared from the gold market,” explains John Howlett of Mitsubishi International Corporation. “The already overloaded on the long side gold market couldn’t handle all this temporary euphoria, but the white metals, copper, and oil all got a decent jolt,” he writes. Howlett explains that whether or not this happy deviation from the “lugubrious script” can be sustained will be better known when January’s Purchasing Managers Index (PMI) numbers from both China and Japan are released. “The spending habit of over a billion Chinese citizens trumps the possible fiscal responsibility of 11 million Greeks,” he says. “Technically for gold there is the confluence of the 200-day moving average (around 1252.50) and the round 1250 number that has to hold to keep the bulls from all-out panicking,” Howlett explains. Greece’s Finance Minister is set to meet European Central Bank President Mario Draghi on Wednesday.
