Mid-Day Gold & Silver Market Report, 6/14/2012
GLOBAL CONCERNS GROWING AHEAD OF GREEK ELECTION
Gold is on the rise, while the euro has remained steady ahead of this weekend’s Greek elections. The yellow metal was powered by weaker than expected American retail and inflation data released Wednesday, and it appears to remain on that path. Investors are assuming German bonds may begin to lose their safe haven appeal with future elections along with Europe’s economic predicament. “Such a scenario … would mean investors would be on the lookout for new ‘secure’ places to park their money. Given the much reduced list of alternatives, Gold would be one of the top options,” UBS analysts wrote.
Countries worldwide are bracing for the Greek election set for Sunday. If investors become panicked over the election, it could be detrimental to the market. The Bank of Japan and Swiss National Bank are reportedly concerned that their currencies could soar with investors seeking security, but intervention would be likely. “Europe’s debt problems are the biggest risk to the global and Japanese economies,” Bank of Japan governor Masaaki Shirakawa told parliament this week. “A loss of market stability will lead to a severe economic slump, as we experienced during the Lehman crisis.”
Consumer confidence in the United States rose for the fourth straight week, with the economy, finances and buying plans all showing progress. Joseph Brusuelas at Bloomberg LP in New York said, “It is likely a function of the steady drop in gasoline prices. Households feel a bit more comfortable about their own financial situation.”
At 1 p.m. (EDT), the APMEX Precious Metals spot prices were:
- Gold, $1,620.80, Up $1.40.
- Silver, $28.65, Down $0.39.
- Platinum, $1,489.50, Up $20.70.
- Palladium, $635.80, Up $11.50.
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