GERMAN CHANCELLOR BACKS EURO, MAY NOT BACK GREECE
American stock futures received a boost this morning, thanks to German Chancellor Angela Merkel. Overnight, Merkel reaffirmed Germany’s commitment to the euro, much like what European Central Bank President Mario Draghi said recently. “With Merkel voicing her support for Draghi’s plans and restating that all measures would be taken to defend the euro, investors are breathing a sigh of relief this morning,"” said Mike McCudden of Interactive Investor.
Speculation that a Greek exit from the eurozone is building today, as Greek Prime Minister Antonis Samaras is scheduled to meet with Merkel today and French President Francois Hollande on Saturday. Recently, there has been talk of Greece seeking to extend its austerity program over four years instead of the two years it originally agreed upon. This might not sit well with Germany and France, which are reportedly finished compromising with Greece. Samaras and his political party promised this extension during Greek elections, and a failure to make it happen might cause further political issues in that country.
Gold and Silver prices have recovered from slight early morning losses on Merkel’s pledge to the euro. Nick Tevethan of ANZ in Singapore said, “The (Gold) market is still moving on changing expectations of central bank actions and is so far unwilling to push prices out of the $1,590 to $1,630 range.” The United States Federal Reserve’s meeting set for the end of August in Jackson Hole, Wyo., is likely to send Gold out of that range.
At 9 a.m. (EDT), the APMEX Precious Metals spot prices were:
- Gold, $1,618.90, Up $1.20.
- Silver, $28.35, Up $0.03.
- Platinum, $1,458.50, Up $22.30.
- Palladium, $595.30, Up $10.30.
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