Mid-Day Gold & Silver Market Report – 05/16/2012

Brandi Brundidge

5/16/2012 12:06:00 PM

GOLD, COMMODITIES FEELING PRESSURE; GREEK BANKERS WORRIED  

Greek turmoil has pushed Gold prices down for a fourth straight day. Industrial commodities such as copper and oil also are under pressure from the rising dollar. With growing fears over Greece’s possible exit from the euro and over the debt crisis facing the remaining European nations, investors increasingly are shifting assets to the United States dollar. “It’s difficult to see a turnaround just yet. There will be one, but I don’t think this is the time, just when we are in the eye of the storm,” Societe Generale analyst Robin Bhar said.

The ongoing uncertainty in Greece has led to a near run on financial institutions, with Greeks withdrawing nearly 700 million euros. George Provopoulos, head of the Greek central bank, told President Karolos Papoulias that many institutions are worried about their survival and that the situation could get worse. “Provopoulos told me that of course there’s no panic, but there’s great fear, which can evolve into panic,” the president said. Banks in downtown Athens were open today for business as usual.

Improvements in the job market and implementation of tighter lending standards have pushed the American mortgage delinquency rate to its lowest level since 2008. “Delinquencies are clearly continuing to improve,” said Michael Fratantoni of the Mortgage Bankers Association. “Newer delinquencies, loans one payment past due as of March 31, are down to the lowest level since the middle of 2007, indicating fewer new problems we will need to deal with in the future.”

At 1 p.m. (EDT), the APMEX Precious Metals spot prices were:

• Gold - $1,542.70 – Down $15.90.
• Silver - $27.54 – Down $0.62.
• Platinum - $1,434.30 – Down $13.20.
• Palladium - $595.00 – Down $7.10.

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