Morning Gold & Silver Market Report, 6/12/2012

Timothy Oakes

6/12/2012 8:11:00 AM

MORE EUROPEAN COUNTRIES ADDED TO WORRY LIST  

Precious Metals prices have remained relatively steady, rising a bit during early morning trading. Some analysts are saying that the safe haven appeal of Gold is borne not of the eurozone worries, but actually what those worries could do to the U.S. economy. Analyst Nic Brown said, “Gold is sitting, waiting for something to happen, but I would argue it is waiting for something to happen in the United States, rather than Europe. (We need) more clarity in the United States over whether the economic data is going to improve again … or whether the weakening data is a sign of slower economic growth, and that therefore the Fed will have to do something. For me, the focus is definitely on the U.S. side of the Atlantic. In the meantime, Gold is going up, down or sideways dependent on what is going on in the euro/dollar rate, and there isn’t a great deal else that is moving it around.”

In an interesting turn of events, outspoken Austrian Finance Minister Maria Fekter put Italy right back in the eurozone spotlight with Spain. However, Italy does not have nearly the exposure that Spain does, considering its much lower unemployment rate and lack of banking exposure to the real estate crisis. In Fekter’s opinion, “Italy has to work its way out of its economic dilemma of very high deficits and debt, but of course it may be that, given the high rates Italy pays to refinance on markets, they too will need support.” Meanwhile, Italian Prime Minister Mario Monti called her remarks “completely inappropriate.” The nation of Cyprus also could be looking for a bailout, and it could become the fifth country to make such a request. Banking issues in Cyprus are bringing the need to light.

At 9:01 a.m. (EDT), the APMEX Precious Metals spot prices were:

• Gold, $1,604.80, Up $7.80.
• Silver, $28.93, Up $0.23.
• Platinum, $1,446.50, Down $4.80.
• Palladium, $624.00, Down $1.60.

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