Closing Gold & Silver Market Report – 5/15/2012
EURO TUMBLES AS GREEKS WILL HEAD BACK TO POLLS
After weeks of infighting and deadlock among Greek politicians, party leaders declared their inability to form a unified government. The nation will return to the voting booth to reshuffle the deck again in an election that will essentially amount to a referendum on whether Greece should drop the euro as its currency or continue a path of fiscal austerity. The election is expected to be scheduled for June 10 or June 17. The euro tumbled to a four-month low against the American dollar on the announcement, which drove Precious Metals prices down. “If Greece -- and this is the will of the great majority -- wants to stay in the euro, then they have to accept the conditions,” said German Finance Minister Wolfgang Schaeuble. “Otherwise, it isn’t possible. No responsible candidate can hide that from the electorate.”
Wall Street posted losses today on European fears, despite cautiously optimistic news about the American economy. “The economy continues to grow at a decent clip, but there are still a lot of risks coming from overseas,” said Omair Sharif, an economist at RBS. Signs of growth could be seen today in retail data, showing that retail sales are growing (albeit at a reduced rate than the past few months) with an overall gain of 0.1 percent. Lower gasoline prices may boost consumer spending by freeing up household incomes for discretionary spending. The core Consumer Price Index, the inflation index most used by the Federal Reserve, rose 0.2 percent, which reflects an annualized rise in prices of 6 percent.
At 5 p.m. (EDT), the APMEX Precious Metals spot prices were:
- Gold - $1,545.30 - Down $17.20.
- Silver - $27.77 - Down $0.65.
- Platinum - $1,433.30 - Down $10.30.
- Palladium - $596.00 - Up $0.20.
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