Mid-Day Gold & Silver Market Report – 6/24/2011
SELLOFF CONTINUES; WILL AUSTERITY EVEN MATTER IN GREECE?
Gold prices are down again today amid “merely follow-through selling after yesterday’s strong drop,” says Brien Lundin with the Gold Newsletter. For the second day in a row, most stock prices are down as well as gold, going against the historically negative correlation the two share. It is not uncommon for commodities (including gold) to be sold off to cover losses in the stock market.
As the debate around austerity measures intensifies in Greece, it is becoming more apparent that those measures are irrelevant, writes Jeff Cox of CNBC.com. He goes on to say, “[A]ll the austerity in the world won’t make Greece’s problems go away.” Banking Analyst Dick Bove of Rochdale Securities wrote, “Greece and a number of other European countries cannot repay their debt. In fact, they will never be able to repay their debt under current conditions because their economies are not competitive globally.” This highlights the underlying problem in Greece, which is the lack of a modernized economy.
In an effort to resurrect stalled negotiations aimed at reaching a deal on the U.S. debt ceiling, President Obama plans to hold separate talks with Senate Democratic and Republican leaders Monday. This comes after House Majority Leader Eric Cantor walked out on bi-partisan talks due to the Republicans’ refusal to increase taxes as part of the deal.
At 12:51 pm (CT) the APMEX precious metals spot prices were:
- Gold - $1,502.30 (down $18.70 on the day)
- Silver - $34.84 (down $0.26)
- Platinum - $1,684.80 (down $10.70)
- Palladium - $735.80 (down $9.60)