Morning Gold & Silver Market Report – 2/13/2012

Peter LaTona

2/13/2012 8:09:00 AM

DOLLAR DECLINES, EURO UP ON GREEK AUSTERITY VOTE  

True to form, as the chances of a Greek bailout improve, the dollar goes down while pushing the value of the euro up. In early morning trading, both equity and precious metals markets are reacting by going higher. Greek lawmakers voted 199-74 to pass the measures demanded by eurozone finance ministers. Greek leaders were clearly told that, without the acceptance of additional austerity measures, they would not receive the next round of bailout money. Eurozone finance ministers remain somewhat skeptical, as we have been down this path before. It is one thing to say you will impose drastic spending cuts, and yet another to enforce them. Already, the city of Athens experienced violent protests and rioting in response to the austerity vote.

President Barack Obama will propose his election-year budget today. It is expected that he will defer spending cuts and propose raising taxes on the rich. There has been no budget approved for more than 1,000 days, and today’s proposal from the president is given no chance of passing, either. Most analysts view today’s budget proposal as a political statement as Obama draws a populist line between himself and Republican opponents.

At 8 a.m. (CST), the APMEX precious metals spot prices were:

• Gold - $1,724.10 – Down $0.10.
• Silver - $33.82 – Up $0.17.
• Platinum - $1,668.80 – Up $8.00
• Palladium - $704.00 – Down $0.10.