British Mint felt strong demand from Greece

It looks like Greek citizens are branding for the worst by buying more gold coins as a safe-haven currency until the nation's politicians can come to terms with their European creditors. Analysts expect Greece and the EU to eventually reach an agreement, but they also noted that the Grexit threat is at its highest since 2012.

According to reports, the central bank of Greece has not seen an increase in demand for gold. He reported that he sold 5,849 gold coins in January and this is not "anomalous activity." However, Lisa Elward, head of gold sales at the Royal Mint, said there was a marked increase in demand from Greek customers in the last quarter.

Analysts at Natixis also suspect that demand for US dollars has increased in the country. However, they note that the gold market is oblivious to the growing uncertainty in Europe. The yellow metal remains under pressure from the strengthening of the US dollar. Despite ongoing negotiations between Greece and the EU, positive developments in the US are beginning to overshadow developments in Europe and gold has no support, according to Natixis analysts.

Negotiations between Greece and other European countries will continue in a way that no agreement was reached at previous meetings. Greece must shortly come up with a new bailout agreement before it runs out of funding and faces a threat of default on some of its existing debt obligations.