THE REACTIONS TO THE SPAIN BAILOUT ARE PESSIMISTIC
Goldman Sachs Group Inc. is forecasting a 23 percent return in a year for industrial metals, with Gold as one of the top picks. Jeffrey Currie, head of commodities research, said, “Although the macroeconomic backdrop still remains uncertain, particularly in Europe, we believe that the selloff in commodity prices is likely overdone and the price risks are shifting more to the upside.”
Spain is now the fourth eurozone member to receive a banking bailout since the debt crisis began in Europe three years ago. Some fear that this bailout will put the nation in a deeper hole. Christian Reicherter at DZ Bank AG said, “This bailout doesn’t solve the euro region debt crisis. There is skepticism about whether the money is enough for the banks, and whether the nation might also need help, and this will keep Spanish bonds under pressure.”
American stocks fell Monday, as investors are beginning to worry about approaching Greek elections. Investors are remaining cautious with the possibility of the Federal Reserve announcing another round of quantitative easing. Andrew Fitzpatrick at Hinsdale Associates said, “It’s a market that is looking to the next thing. It’s a market that is looking to the next thing. It could be Greece, and it could be further economic data. It’s a market waiting for possible Fed or European bank easing.”
At 5 p.m. (EDT), the APMEX Precious Metals spot prices were:
- Gold, $1,597.60, Up $6.20.
- Silver, $28.61, Up $0.05.
- Platinum, $1,445.70, Up $18.60.
- Palladium, $622.00, Up $10.00.
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