CONCERNS MOUNT AHEAD OF EUROPEAN SUMMIT; DOLLAR RISING
Precious Metals prices were weathering the blows of investors concerns over the eurozone debt crisis. Concerns ahead of the European Union summit have influenced investors and world markets. The Indian rupee continues to struggle, which has curbed the primarily Gold investing nation’s normal buying activity. Analyst Robin Bahr said, “There’s no semblance of a safe haven at the moment, but as the price goes lower, that bid does come back as you maybe get some renewed investor interest -- sovereign wealth funds and central banks looking to nibble away, and even some physical buying.”
Concerns over Germany’s economic issues mount, as executive and consumer sentiment fell from 90.5 in May to 89.9 (the lowest for Germany since late 2009) and unemployment rose. The issue is that core member nations, not just secondary nations, are now affected by the growing debt crisis. Economist Christoph Weil said, “Germany won’t be able to disconnect from the euro region developments. … The second quarter will show an economic contraction, and there are no signs of improvement for the following three months. Whether the situation stabilizes afterward hinges decisively on the euro crisis, and the latest developments are no real reason for optimism.”
Pressure continues to build for German Chancellor Angela Merkel within the European Union as she continues to be attacked on all sides from nations that find her intransigence irritating. Merkel is also feeling global pressure. The issue is that as unpopular as her beliefs are in the EU, they are quite popular with the German people. Billionaire George Soros said he believes her position is a bit myopic. He said, “Merkel has realized that the euro is not working, but she cannot change the narrative she has created because that narrative has caught the imagination of the German public, and the German public has accepted it.”
At 9 a.m. (EDT), the APMEX Precious Metals spot prices were:
- Gold, $1,570.10, Down $9.90.
- Silver, $26.96, Down $0.11.
- Platinum, $1,402.30, Down $9.50.
- Palladium, $577.00, Down $3.80.
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