GOLD HOLDS FIRM; SPAIN MAY BE ON ITS OWN
Gold felt some pressure today as the U.S. dollar strengthened and profit taking began. However, the yellow metal is proving it can hold its ground by making up part of its morning loss for the day. It is expected that the American economy will see more optimistic news, and that along with the further downfall of Europe will be positive for the U.S. dollar’s value. David Wilson, an analyst from Citigroup, said, "Obviously, Europe is still continuing to struggle, and that would suggest that the rally is done for the time being, although I'm not saying Gold won't see more upside further out."
As eurozone finance ministers announced a 500 billion euro bailout plan, they made it clear that Spain would not be receiving assistance as the market had anticipated. German Finance Minister Wolfgang Schaeuble stated that Madrid has indicated they do not want any aid. "Spain needs no aid program. Spain is doing everything necessary, in fiscal policy, in structural reforms. Spain has a problem with its banks as a consequence of the real estate bubble of the past years. That's why Spain is getting (EU) help with banking recapitalization," said Schaeuble.
At 5:15 p.m. (EDT), the APMEX Precious Metals spot prices were:
- Gold, $1,777.10, Down $3.20.
- Silver, $34.02, Down $0.56.
- Platinum, $1,694.90, Down $9.30.
- Palladium, $659.50, Down $4.70.
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