Morning Gold & Silver Market Report – 10/19/2012

Ryan Schwimmer

10/19/2012 8:01:00 AM

FRENCH PRESIDENT CLAIMS EUROZONE IS ‘ON TRACK’ – IS IT?

The euro is down this morning after the EU summit ended with no major developments. French President Francois Hollande believes the eurozone is “on track” to fixing the problems in the region, but he’s not fooling anyone. A statement from the summit claimed that banking supervision was coming, but as Alex White of JPMorgan said, “The statement repeated the passage from the June summit word for word – indicating how little progress has been made. While France and the periphery continue to see banking sector support coming early next year, the German vision still looks like it is based around a timeframe from 2015 and beyond.” If this is true, it could be more than two years before the eurozone is on track again.

The euro’s weakness seems to be holding the Gold price down at the moment. VTB Capital analyst Andrey Kryuchenkov said, “The EU leaders' summit delivered very little except the banking union, there is nothing to suggest that the euro will be stronger than the dollar going forward, and that's the problem.” One analyst said, “Data from China were on balance eco positive, dampening hopes for sooner and more aggressive easing there. The U.S. data this week have been generally stronger, again lessening chances for further aggressive easing measures.”

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

• Gold, $1,737.40, Down $6.80.
• Silver, $32.56, Down $0.33.
• Platinum, $1,633.80, Down $6.90.
• Palladium, $639.70, Down $8.50.

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