EURO WORRIES GROW; GOLD A SAFE HAVEN
Downward pressure on Gold from a weakening euro is being offset to some degree by investors seeking the safe haven appeal of Gold. The European currency fell as the bailout plans for both Spain and Greece appear to have hit significant road blocks. "A drift higher in the dollar won't have much of a damning impact on Gold because it would indicate that there is some renewed uncertainty and worries in the market and that tends to be supportive to Gold," said Ole Hansen at Saxo Bank.
German Chancellor Angela Merkel’s words of support for Greek Prime Minster Antonis Samaras were overshadowed by new data indicating that Greece’s debt situation may require yet another round of restructuring. The International Monetary Fund (IMF) warned Eurogroup finance ministers that Greece will miss the five year debt reduction target required for its 130 billion euro bailout. The IMF also has concerns that it will be nearly impossible to get the Greek debt level below the 120 percent of economic output by 2020 as hoped. Chancellor Merkel’s visit to Greece, the first since the debt crisis began in 2009, has seen significantly increased security as Greek protesters have taken to the streets to vent their anti-German sentiment.
At 1 p.m. (EDT), the APMEX Precious Metals spot prices were:
- Gold, $1766.80, Down $8.40.
- Silver, $33.94, Down $0.09.
- Platinum, $1,694.40, Down $1.40.
- Palladium, $658.60, Up $0.70.
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