Renewed worries of a deepening eurozone debt crisis have sent the euro to a two-year low against the American dollar, and Precious Metals are following the former downwards. Jeremy Stretch of CIBC said, “What began as a Spanish banking bailout looks to be moving rather quickly towards a possible sovereign bailout. Overlay that with increasingly negative news on Greece and you get a fairly negative mix, so the path of least resistance for the euro is down.” Spanish bond yields rose to the highest levels in the history of the euro.
The bad news out of Greece comes from reports that the International Monetary Fund (IMF) will no longer provide additional financing for the country. Greece could be broke by September if it does not receive additional aid from the IMF. The problem is Greece not being able to (or simply refusing to) meet goals set by the Troika in order to receive aid. German Finance Minister Wolfgang Schaeuble said, “If there were delays, Greece must make up for them.”
“Dr. Doom” Nouriel Roubini believes that the U.S.A. economy is still on a downward slope. After saying that rosy forecasts by economists are out of line, Roubini said, “In 2013 … as some tax cuts are allowed to expire, disposable income growth and consumption growth will slow. The U.S. will then face not only the direct effects of a fiscal drag, but also its indirect effect on private spending.”
At 9 a.m. (EDT), the APMEX Precious Metals spot prices were:
- Gold, $1,569.30, Down $15.20.
- Silver, $26.86, Down $0.53.
- Platinum, $1,392.90, Down $21.60.
- Palladium, $565.40, Down $11.70.