Morning Gold & Silver Market Report, 6/18/2012


GREECE VOTES FOR AUSTERITY, BUT SPAIN HOLDS DOWN OPTIMISM

American stock futures, Gold, and Silver are all trading flat or lower this morning. Optimism from Greece’s election is wearing thin thanks to renewed worries from Spain. In Greece, Sunday’s election seems to be a victory for a pro-austerity party, though investors seem to be waiting for more information from Spain before they get too excited. Steen Jakobsen of Saxo Bank said, “The market knows this is about buying time, and as the main story is now Spain … we need more details on banking reports and Germany’s intention. It’s more concerning that (shortly into the European trading day), Spain is back in focus.”

Commerzbank analyst Eugen Weinberg said, “It seems the market is still in a negative mood, so we are still expecting the slide on the commodity markets to continue. This is definitely helping Gold.” This month has seen Gold move as a safe haven once more after seemingly losing some of its safe haven appeal in recent months, and this is likely because of hints from the Federal Reserve about further quantitative easing in the United States.

Ashraf Laidi of City Index said he believes the Fed will announce more financial stimulus this week. “One reason we expect the euro to push higher has nothing to do with Greece. We think the Fed is going to open the door to further stimulus on Wednesday.” The stimulus could come in the form of extending the Fed’s unpopular “Operation Twist,” which is scheduled to end this month.

At 9 a.m. (EDT), the APMEX Precious Metals spot prices were:

  • Gold, $1,619.90, Down $8.20.
  • Silver, $28.41, Down $0.43.
  • Platinum, $1,486.00, Down $3.20.
  • Palladium, $630.30, Down $1.10.