Closing Gold & Silver Market Report, 05/22/2012
METALS RETREAT AS DOLLAR CONTINUES TO CLIMB
Currency markets pushed the American dollar higher amid dim hopes for a European solution. Kevin Hebner, a foreign exchange strategist for JPMorgan in London, in a note to clients wrote, “For the second time in six months, Greece’s Economic and Monetary Union exit seems imminent.” Fears of a breakup of the eurozone have been driving down the value of the European currency for the past few weeks. A weak euro bolsters the American dollar, and as a consequence, typically pushes down the price of Precious Metals and other commodities.
A bit of positive news surrounding the American housing market was released today, indicating an increase in sales of existing homes. “We’re still a ways from looking at an encouraging picture of the U.S. economy, though when it comes to housing, every little bit helps,” said Camilla Sutton, a currency strategist at Scotia Capital in Toronto. Existing home sale prices have increased 10.1 percent from April 2011, but are still about 30 percent lower than the high water mark set in 2006. Diana Olick, a real estate reporter for CNBC, cited reductions in bank foreclosures and short sales as the primary driver, as fewer homes at lower price points are available for sale, thus accounting for the higher sales prices.
At 4 p.m. (EDT), the APMEX Precious Metals spot prices were:
- Gold, $1,569.10, Down $21.10.
- Silver, $28.25, Up $0.17.
- Platinum, $1,448.80, Down $14.70.
- Palladium, $613.00, Up $0.30.
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