Morning Gold & Silver Market Report, 6/19/2012
TIME TO SOUND ALARM ABOUT SPAIN?
Precious Metals prices have been steady or rising through early morning trading. Investors are wary of world events and slowly re-establishing their safe haven mentality regarding global and domestic economic situations. The Federal Open Market Committee is set to release a statement Wednesday. Analyst Lynette Tan said, “Ahead of the FOMC meeting, Gold bugs will watch for signs of more quantitative easing or an extension of Operation Twist when it ends this month. A failure to confirm more asset purchase or the like could see Gold dropping again. For the moment, we expect policy decisions from the Fed to influence Gold price more than risk appetite linked to the euro crisis.”
Is it time to sound the alarm on Spain? That’s the question facing the global community, as a call for help has so far fallen on deaf ears. But alarm is readily apparent as Spain attempt to sell debt. German Chancellor Angela Merkel continues to compromise, but the firm line in the German sand is not sharing the burden with the euro bonds. Spanish Treasury Minister Cristobal Montoro has asked the European Central Bank for its help. However, the ECB continues to put the onus of responsibility on the countries themselves. Spanish Economy Minister Luis de Guindos said, “We think … that the way markets are penalizing Spain today does not reflect the efforts we have made or the growth potential of the economy. Spain is a solvent country and a country which has a capacity to grow. … I don't think things look catastrophic for Spain, as eventually some solution will have to be found or the ECB will have to step in again. It’s in no one’s interest to see Spain bailed out, because then there will be questions as to whether there are enough funds, and questions over Italy.”
At 9 a.m. (EDT), the APMEX Precious Metals spot prices were:
- Gold, $1,630.70, Up $3.20.
- Silver, $28.85, Up $0.08.
- Platinum, $1,489.30, Up $3.20.
- Palladium, $634.30, Up $0.10.
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