POLITICAL TURMOIL RETURNS TO EUROPE; GOLD POISED FOR MORE GAINS
Investors have their eye on Europe as there are signs of returning political turmoil. Spanish government bonds rose as Spain’s prime minister is working to contain a corruption scandal. Later this month, Italy will have a general election, and investors will watch the actions of that new government. There is concern the next government will change economic measures already in place. Jim Reid, strategist at Deutsche Bank in London, said, “The weekend news flow served as a timely reminder of the political risks looming on the European horizon.”
The Gold price is trading in a tight range currently, but Harry Colvin, director and senior economist at Longview Economics, said in a recent interview with CNBC that “Everyone is always bearish at the lows, that’s the time to buy it, we’re going to get a good rally this year I think.” He feels that Gold is poised for a good rally, regardless of inflation. Colvin added, “Gold’s gone sideways for sixteen months, that’s because the balance sheet in the Fed has gone sideways for the last sixteen months. The balance sheet is about to expand rapidly. And with that we’re going to get a rally in the Gold price, it’s going to go hard this year and probably into the next.”
At 9 a.m. (EST), the APMEX Precious Metals spot prices were:
- Gold, $1,665.80, Down $5.30.
- Silver, $31.57, Down $0.43.
- Platinum, $1,700.60, Up $12.90.
- Palladium, $751.50, Down $5.90.
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