Morning Gold & Silver Market Report – 2/8/2012
GREECE MISSES DEADLINES; IRAN A MILITARY CONCERN?
Precious metals prices have remained relatively steady in overnight trading. Greece’s difficulty in reaching an agreement on its debt crisis continues to be an albatross around the neck of the global economic outlook. Commodity strategist Jeff Friesen said, “If Greece were to agree on everything right away, I don't think it would solve everything, because they will still have to implement the measures. … There are plenty of land mines left.” Basically, with all the European economic uncertainty and the far-reaching global impact, central banks may push more accommodative monetary policies to offset recession fears.
The problems persist over the terms of the initial agreement for the bailout package for Greece. An agreement on austerity measures must be reached by March 20, when a 14.5 billion-euro bond payment comes due. As of now, Greece is not able to make that payment without the bailout. Greek Prime Minister Lucas Papademos is set to meet with Greek political leaders today after late-night meetings with the European Commission, the European Central Bank and the International Monetary Fund. In an interview today, German deputy floor leader Michael Meister said, “The situation is getting more problematic for Greece day by day. … A day wasted in failing to tackle Greece’s administrative, budget and competitive problems is a bad day.” He said this reform was “not for Brussels, Berlin or the IMF, but for their own sake.”
Iran continued its threatening rhetoric toward the U.S. The U.S. has imposed its financial sanctions against Iran. However, in a news conference in Russia, Iranian ambassador Seyyed Mahmoud-Reza Sajjadi said, “The Americans know very well what Iran is like and what our potential is. … Iran is in a very good position to deliver retaliatory strikes on America around the world. … An attack on Iran would be suicidal for them.” Russia continues to stand behind its Middle Eastern allies, Iran and Syria. Bombing continued in Syria, and Turkey looks to be stepping up its effort to secure a united Western-, Arab- and U.N.-backed effort to remove Syrian President Bashar al-Assad from power. Russia and China oppose that course and are hoping for a more diplomatic resolution that would allow Assad to stay in power.
At 8:01 a.m. (CST), the APMEX precious metals spot prices were:
- Gold - $1,741.90 – Down $4.90.
- Silver - $34.25 – Down $0.02.
- Platinum - $1,652.40 – Down $3.40.
- Palladium - $708.10 – Down $2.00.