Gold retreated today as Europe continued to fan the flames of fear across the globe. Markets were in selloff mode, as more than 2/3 of stocks on the New York Stock Exchange lost value and oil fell below $80 a barrel for the first time in eight months. “Concerns over the prospects of Greece leaving the European Union and the resulting impact on the euro zone’s future economic health had sellers out in force,” said Alan Herbst, a principal at Utilis Advisory Group.
Despite gold’s drop in price recently, many analysts remain bullish on the long-term prospects. “I remain constructive on gold as a store of value, or an alternative currency, but instead investors are using it as a source of cash or stepping over to go to the more traditional bastions of safety, as in the German bund, the U.S. dollar or Treasurys,” said Mark Luschini, chief investment strategist at Janney Montgomery Scott. It seems that investors are using gold as an insurance policy, and filing claims to raise their cash positions.
Speculation abounds as to who will be tapped to fill the job of Treasury Secretary once Timothy Geithner steps down after the November elections. The new secretary will undoubtedly have a full plate of issues to deal with, from a trillion-dollar deficit in the American budget to a debt crisis in Europe and our strategic relationship with China.
At 4 p.m. (EDT), the APMEX Precious Metals spot prices were:
- Gold, $1562.80, Down $15.30.
- Silver, $27.86, Down $0.41.
- Platinum, $1427.40, Down $33.00.
- Palladium, $596.00, Down $21.60.