Morning Gold & Silver Market Report – 5/14/2012
GOLD DROPS TO 4.5-MONTH LOW ON FALLING EURO
The European debt crisis continues to cause more and more concern, especially after the political deadlock in Greece over the weekend. Gold prices have been moving in tandem with riskier assets for much of the past year, and this European economic uncertainty is fueling movement away from riskier assets. In the end, the same phenomenon is driving Gold prices down. “Gold is under severe pressure. The U.S. dollar is being seen as a safe haven at the moment, and as long as the dollar is appreciating against the euro, this is clearly weighing on the Gold price,” said Daniel Briesemann, an analyst at Commerzbank.
Greece cannot decide whether it will support or oppose the 130 billion-euro bailout offered by the European Union and International Monetary Fund. The roadblock began with May 6 elections, in which Greek politicians came up equally divided on this issue. Greek President Karolos Papoulias had not gained support over the weekend or today, which is reinforcing the view that Greece is heading for bankruptcy and an exit from the eurozone. If a compromise cannot be reached between the two parties, then there will be no choice but to call for another election.
At 9 a.m. (EST), the APMEX Precious Metals prices were:
- Gold - $1,563.10 – Down $22.40.
- Silver - $28.57 – Down $0.39.
- Platinum - $1,451.40 - Down $2.00.
- Palladium - $603.00 – Down $1.40.
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