Morning Gold & Silver Market Report, 5/22/2012
PRECIOUS METALS CONTINUE TO RIDE EUROZONE TRAIN
Concerns out of the eurozone continue to pull down the euro and strengthen the American dollar, thus pulling down prices. Gold in particular has remained relatively fluid within a certain price range of $1,530 to $1,590. However a key price indicator in the short term continues to be $1,600 an ounce. However, euro pressure continues to be in the driver’s seat for prices. An unidentified international dealer said, “If we break above $1,600 and even go higher to confirm the bull trend, we will see more buying.”
Greek citizens continue to hold out hope that money will be found to help bail out the country and its citizens. The prevailing feeling is that Europe will not just cut its losses and kick Greece out of the eurozone. An alarming, almost deja vu like feeling permeates the country as one citizen said, “There’s a lot of money in this country. They just need to tax the rich and it would solve so many problems.” Does that sound familiar? The Greek citizens voice their displeasure through their voting results, with another election coming next month and fears that the drachma will come back.
The issues surrounding Greece do have some effect on the United States and should not be taken lightly. There are a few issues in particular including American banks’ susceptibility to eurozone debt. The weakening power of the euro as a currency could mean that American goods would also become more expensive and less attractive to consumers in other nations. There is also a global effect that could be felt by other global powers such as China.
At 8:01 a.m. (EDT), the APMEX Precious Metals spot prices were:
- Gold, $1,579.50, Down $10.70.
- Silver, $28.29, Down $0.12.
- Platinum, $1,460.90, Down $2.60.
- Palladium, $613.70, Up $0.90.