Morning Gold & Silver Market Report – 1/24/2012
GOLD, SILVER PRICES RETREAT WITH EURO
European finance ministers rejected a proposal by the private holders of Greek debt and are balking at putting in additional public money if the private investors are not willing to take a bigger haircut. This news has sent European stocks down, along with the euro. The Greek debt crisis remains cloaked in uncertainty, as the debt restructuring issue is far from resolved. Hedge funds, which account for a large number of the private debt holders, are preparing for a legal battle with Greece. The hedge funds want either all of their money, or they want Greece to default. Hedge funds have bought insurance as a hedge against default, so they stand to get their money back in either scenario.
U.S. stock futures are slipping over the standoff in Greece. If that holds today, it will snap a five-day rally. “There’s too little movement on the political front in Brussels and Athens,” said Witold Bahrke, a senior strategist at Copenhagen PFA Pension A/S, where he helps manage assets worth $45 billion. “Markets are experiencing a small setback.”
At 8 a.m. (CST), the APMEX precious metals spot prices were:
- Gold - $1,666.20 – Down $13.60.
- Silver - $32.18 – Down $0.18.
- Platinum - $1,543.80 – Down $18.30.
- Palladium - $679.00 – Down $10.80.