GOLD DROPS WITH POSITIVE U.S. DATA; SPAIN FORESEES ISSUES WITH A BAILOUT
Gold’s price dropped today with concerns that the Federal Reserve could pull QE3 sooner than expected based on improved U.S. consumer sentiment and jobs data. "We are starting to see some improvement in the U.S. economy, so the duration of a quantitative easing plan may not be as long as what was initially anticipated. People who buy Gold as an inflation play are starting to step out of the market,'' said Phillip Streible, at futures brokerage R.J. O'Brien. Analysts suggest investors may be on the sideline waiting until after the U.S. Presidential elections for the yellow metal to show any new positions.
Spain is currently being affected by a financial crisis in which they want no assistance with. The government was expected to ask for aid from the eurozone to bring the country out of its recession, but Spain has concerns with the financial restructuring that would soon follow if they consider a bailout. "If you are the leader of a country that has done everything that had to be done, and then the ECB (European Central Bank) works on the secondary markets for you and lowers those yields, and (yet) you are told that you have to go and ask for a (bailout) and you say, ‘OK,’ but then you’re given very strong signals that if you go, you will be told, ‘No.’ How can you reconcile those two things?" Angel Gurria, secretary general of the Organization for Economic Cooperation and Development, told CNBC on the sidelines of the International Monetary Fund’s semi-annual meetings in Tokyo.
At 5:15 p.m. (EDT), the APMEX Precious Metals spot prices were:
- Gold, $1754.90, Down $15.20.
- Silver, $33.48, Down $0.61.
- Platinum, $1654.70, Down $31.90.
- Palladium, $635.70, Down $16.20.
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