Morning Gold & Silver Market Report 5/21/2012

GOLD, SILVER PRICES SLIGHTLY OFF IN MORNING TRADING   

Markets continue to monitor news coming out of the eurozone. Greece wants a new deal with less austerity, but there are no signs Germany is willing to give in. Of course, Greece is not the only problem. Investors will watch Spanish banks for any signs of additional weakness. There are those who are concerned there could be runs on the banks.

Eurozone leaders will meet informally in Brussels, Belgium, this week. French President Francois Hollande is expected to propose the idea of a Eurobond. Eurobonds would be jointly underwritten by all eurozone members. Germany is reluctant to support such a measure until other member states have their financial houses more in order. If such bonds were to be written, it would place Germany in a position of financing the debt of other states.

The leaders of the Group of Eight met over the weekend at Camp David. They all agreed that Greece should stay in the eurozone and they agreed “on the importance of a strong and cohesive eurozone for global stability and recovery.”

The continued uncertainty in Greece has caused the euro to give up the small gains it had achieved against the dollar. This largely accounts for weaker openings for Gold and Silver.

At 9 a.m. (EST), the APMEX Precious Metals prices were:

• Gold, $1,589.20, Down $4.20.
• Silver, $28.31, Down $0.48.
• Platinum, $1,461.80, Up $0.50.
• Palladium, $613.30, Up $7.70.

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