Markets continue to monitor news coming out of the euro zone. Greece wants a new deal with less austerity, but there are no signs Germany is willing to give in. Of course, Greece is not the only problem. Investors will watch Spanish banks for any signs of additional weakness. There are those who are concerned there could be runs on the banks.
Euro zone leaders will meet informally in Brussels this week and French President Francois Hollande is expected to propose the idea of a Eurobond. A Eurobond would be jointly underwritten by all euro zone members. Germany is reluctant to support such a measure until other member states have their financial houses more in order. If these bonds were to written, it would place Germany in a position of financing the debt of other states.
The leaders of the G-8 met over the weekend at Camp David. They all agree that Greece should stay in the euro zone and they all agree “on the importance of a strong and cohesive euro zone for global stability and recovery.”
The continued uncertainty in Greece has caused the euro to give up the small gains it had achieved against the dollar. This largely accounts for the weak openings for gold and silver.
At 9AM EST the APMEX precious metal prices were:
- Gold price – $1,589.20 – down $4.20
- Silver price – $28.31 – down 48 cents
- Platinum price – $1,461.80 – up 50 cents
- Palladium price – $613.30 – $7.70