Morning Gold & Silver Market Report – 5/17/2012
METALS REBOUND; ECB SENDS MESSAGE TO GREECE
Precious Metals prices are rebounding this morning, even as American stock futures are recouping losses following the jobless claims report. The report showed that claims held steady with last week’s revised figure of 370,000 new claims filed. The four-week moving average, however, fell slightly; the moving average is typically seen as a more accurate gauge of trends.
The European Central Bank seems to be sending a message to Greece: Continue with austerity, or else. The ECB cut four Greek banks from liquidity-providing operations in response to the political turmoil in the country, where election battles have revolved around whether to keep up austerity measures or abandon them (and, by extension, abandon the eurozone). Jose Manuel Barroso, president of the European Commission, said, “We want Greece to remain part of the family of the European Union and of the euro. This being said, the ultimate resolve to stay in the euro area must come from Greece itself.”
At a recent bond auction, Spain saw its borrowing costs spike following news of a new recession in that country. Richard McGuire of Rabobank said, “This fits the pattern of recent sales, with the Spanish treasury successfully getting its supply away, but at ever-higher yields.” Borrowing costs in Spain are at the highest levels since the start of the euro.
At 9 a.m. (EDT), the APMEX Precious Metals spot prices were:
- Gold – $1,556.50 – Up $18.40.
- Silver - $27.85 – Up $0.57.
- Platinum - $1,450.70 – Up $17.40.
- Palladium - $603.50 - $8.40.
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