Precious metals have been relatively volatile throughout the day, but ultimately settling higher for the day bringing an end to a downward trend over the last few days. The U.S. dollar was down earlier in the day but rallied through the afternoon. There was also some technical maneuverings ahead of a change in futures contracts. Eurozone fears still continue to fester as an EU summit voiced support for Greece to remain in the eurozone, but not offering anything substantial in terms of a plan to make that happen.
Eurozone citizens, by and large, are still supportive of Greece remaining in the eurozone despite the looming fear that they may be forced to exit. Support for remaining in the eurozone is strongest in Greece and lowest in Germany and Italy. However, support is still well above 50% for Greece to remain in the eurozone. According to John Wright, “Regardless of the turmoil and the debate that’s going on in these crucial countries, it would seem that for the time being, people want to stick with the euro… Maybe it’s an issue of ‘if one goes down, we all go down together’, but nevertheless, given the options, the public in these crucial countries seem to be on side. People aren’t willing to abandon it – not yet.” Meanwhile, the Syriza party continues to build momentum ahead of Greek elections. The Syriza party is anti-austerity and headed by Alexis Tsipras.
Despite the upheaval in Europe the United States’ economy continues to push forward. The debt problems in Europe and China could start impacting American factory data pretty quickly, with the Purchasing Managers Index falling from 56.0 in April to 53.9 this month. Paul Edelstein said, “We are growing at moderate pace of two to two-and-a-quarter percent, but we have some headwinds that are starting to assert themselves, particularly coming from Europe.”
At 5:00 p.m. (EDT) – the APMEX Precious Metals spot prices were:
- Gold – $1,560.20 – Up $10.30.
- Silver – $28.36 – Up $0.76.
- Platinum – $1,421.60 – Up $5.50.
- Palladium – $588.40 – Down $4.70.