Precious metals are down 1%-2% this morning as investors await news from an informal summit meeting in the eurozone. David Morrison of GFT Markets said, “Although this is litle more than a taxpayer-funded dinner for Eurocrats ahead of the main summit in June, any further signs of a rift between Germany and France will see the euro and equities fall further.” Lately, as the euro has moved, so have precious metals.
Germany and France are far from the only topic of note in the eurozone. The main focus at the moment seems to be the potential exit of Greece from the group. Jim O’Neill, chairman at Goldman Sachs Asset Management said, “The markets are putting together a higher probability for the end-game in the eurozone…” in reaction to high demand for Germany’s two-year, no-interest bonds being sold at the lowest yield ever. Speaking on the ramifications of Greece leaving the bloc, he said, “Once one exits, it breaks the notion that it’s a true currency union and that is a big moment.”
Oil markets, which have historically held a positive correlation to gold, have been uneasy in the midst of sanctions placed on Iran and other happenings in the Middle East. A meeting between Iran and six world powers, including the U.S.A., is taking place to continue to attempt to convince Iran to scale back its nuclear program. Iran has made it clear that it will not be intimidated, however, Russia’s foreign minister believes that the impression is that Iran is “ready to seek agreement on concrete actions.”
At 9 a.m. (EDT), the APMEX precious metals spot prices were:
- Gold – $1,563.10 – Down $15.10.
- Silver – $27.87 – Down $0.40.
- Platinum – $1,433.00 – Down $27.40.
- Palladium – $609.50 – Down $8.00.