Greek bailout 'buoys gold market'

The gold market has been buoyed on news that eurozone financial ministers have granted Greece its much-needed €130 billion (£110 billion) bailout.

According to chief executive officer of Capital Spreads Simon Denham, the news of the rescue package's approval has ignited the markets with the "feel-good factor", sending the precious metal's value upwards along with energy and crude prices.

However, he noted that investors are already having doubts about the strength of this new deal - which could collapse if a new government is voted in as a result of the upcoming general election.

Some have speculated that the austerity measures pledged to secure the bailout are so unpopular that future rulers may sacrifice them for public support.

"These doubts will test the strong performance seen over the last few days," MR Denham added.

At 12:00 GMT today (February 22nd), the Forex Gold Index was up 0.4 per cent - or $7.5 - with the price of the commodity currently standing at $1,754.7 per ounce.