Closing Gold & Silver Market Report, 5/24/2012

Timothy Oakes

5/24/2012 4:05:00 PM

PRECIOUS METALS JOSTLED BY CURRENCIES  

Precious Metals prices have been relatively volatile throughout the day, ultimately settling higher and bringing an end to a downward trend over the past few days. The American dollar was down earlier in the day but rallied through the afternoon. There was also some technical maneuverings ahead of a change in futures contracts. Eurozone fears still continue to fester as a European Union summit voiced support for Greece to remain in the eurozone but offered nothing substantial in terms of a plan to make that happen.

Most eurozone citizens are still supportive of Greece remaining in the eurozone despite the possibility that country might be forced to exit. Support for remaining in the eurozone is strongest in Greece and lowest in Germany and Italy. However, support is still well above 50 percent for Greece to remain in the eurozone. John Wright of market researcher Ipsos said, “Regardless of the turmoil and the debate that’s going on in these crucial countries, it would seem that for the time being, people want to stick with the euro. … Maybe it’s an issue of ‘if one goes down, we all go down together.’ But nevertheless, given the options, the public in these crucial countries seem to be on side. People aren’t willing to abandon it; not yet.” Meanwhile, the Syriza party continues to build momentum ahead of Greek elections. The Syriza party is anti-austerity and headed by Alexis Tsipras.

Despite the upheaval in Europe, the United States’ economy continues to push forward. The debt problems in Europe and China could start affecting American factory data soon, with the Purchasing Managers Index slowing from 56.0 in April to 53.9 this month. Paul Edelstein said, “We are growing at moderate pace of two to two-and-a-quarter percent, but we have some headwinds that are starting to assert themselves, particularly coming from Europe.”

At 5 p.m. (EDT), the APMEX Precious Metals spot prices were:

• Gold, $1,560.20, Up $10.30.
• Silver, $28.36, Up $0.76.
• Platinum, $1,421.60, Up $5.50.
• Palladium, $588.40, Down $4.70.

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