Closing Gold & Silver Report, 5/23/2012
MARKETS FALL AS EUROPEAN FEARS SWELL
Gold retreated today as Europe continued to fan flames of fear worldwide. Markets were in selloff mode, as more than two-thirds of stocks on the New York Stock Exchange lost value, and oil prices fell below $80 a barrel for the first time in eight months. “Concerns over the prospects of Greece leaving the European Union and the resulting effect on the eurozone’s future economic health had sellers out in force,” said Alan Herbst, a principal at Utilis Advisory Group.
Despite Gold’s recent drop in price, many analysts remain bullish on the long term prospects. “I remain constructive on Gold as a store of value, or an alternative currency, but instead investors are using it as a source of cash or stepping over to go to the more traditional bastions of safety, as in the German bund, the U.S. dollar or Treasuries,” said Mark Luschini, chief investment strategist at Janney Montgomery Scott. It seems that investors are using Gold as an insurance policy, and filing claims to raise their cash positions.
Speculation abounds over who will be tapped to fill the job of Treasury secretary once Timothy Geithner steps down after November elections. The new secretary undoubtedly will have a full plate of issues to deal with, from a trillion dollar deficit in the American budget to a debt crisis in Europe and our strategic relationship with China.
At 4 p.m. (EDT), the APMEX Precious Metals spot prices were:
- Gold, $1562.80, Down $15.30.
- Silver, $27.86, Down $0.41.
- Platinum, $1427.40, Down $33.00.
- Palladium, $596.00, Down $21.60.
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