Today, gold followed the trends of the euro and oil as all three assets clearly began to strengthen. The safe haven appeal continues to coincide with gold as Jeffrey Sica, at SICA Wealth Management LLC suggested the yellow metal is an essential tool to deal with the global economic worries. Sica said, “Right now the tools to deal with the European crisis and the U.S. economy are limited and questionable. So that puts the financial market in a very vulnerable position and enhances the desire to accumulate safe-haven-type investments” such as gold.
Dennis Gartman, the editor and publisher of The Gartman Letter, spoke to CNBC today about the likeliness of the Federal Reserve announcing the next round of quantitative easing (also known as QE3) as early as this month. Gartman bases his predictions on the latest jobs report that was released Friday with disappointing numbers. Gartman said, “The Fed has made it abundantly clear that it has kept QE3 up on the table; (it) would be executed if economic circumstances deteriorated. And you have to admit that Friday’s number — no matter how you try to slice it — was deterioration.” Gartman also mentioned QE3 will happen far ahead of the U.S.A. presidential election in November so that it is not linked in any political manner to the current administration.
Standard & Poor’s (S&P), one of the big three credit rating agencies, has announced it foresees a one in three chance that Greece will exit the eurozone in the coming months. “ A rejection by Greek voters to enact financial reforms demanded by the European Commission, International Monetary Fund, and European Central Bank would likely result in a cutoff of international aid and subsequent defaults,” S&P said.
At 5 p.m. (EDT), the APMEX Precious Metals spot prices were:
- Gold – $1,619.90 – Down $1.70.
- Silver – $28.30 – Down $0.30.
- Platinum – $1,430.70 – Down $4.50.
- Palladium – $612.90 – Down $1.10.