GOLD DOWN ON EURO NEWS; STOCKS DROP ON WEAK CORPORATE DATA
Gold is set for another day of losses as the euro softened in anticipation of the EU summit’s closing in Brussels. Plans for immediate assistance to the profoundly struggling nations of Greece and Spain went largely unmentioned as the falling euro dragged Gold down with it. Though the metal has descended sharply from recent highs near $1,800, many analysts are still bullish on Gold for the long-term. "There is a clear lack of momentum in the Gold price at the moment," BNP Paribas analyst Anne-Laure Tremblay said. "The recent correction from $1,800 to $1,735, and possibly a bit lower, is likely to be a temporary pause in a wider upward trend."
Along with Precious Metals, the Dow Jones Industrial Average and S&P 500 are also down following the EU summit and reports from several U.S. corporate titans that fell short of projected sales estimates. Microsoft Corp., General Electric, Google and McDonald’s Corp. all posted stunted growth figures for the third quarter, ending a three-day rally for U.S. stocks.
Today marks the 25th anniversary of the largest single-day stock market crash in U.S. history. Many safeguards have been implemented since October 19, 1987 (known as “Black Monday”) to prevent a similar meltdown, but these measures have done little to inspire investor confidence in the stock market. Many economists and market strategists predict another similar scenario. As anxiety expands with people scrambling for a safe place for their hard-earned dollars, many have historically turned to Gold as a refuge during times of inflation and economic turmoil.
At 1 p.m. (EDT), the APMEX Precious Metals spot prices were:
- Gold, $1,722.10, Down $22.60.
- Silver, $32.11, Down $0.78.
- Platinum, $1,612.70, Down $28.50.
- Palladium, $623.70, Down $24.50.
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