Precious Metals are trading lower this morning, as central bank buying finally wasn’t enough to keep prices in positive territory. Renewed concerns out of Greece and Spain have driven the euro downwards and strengthened the dollar. However, analysts at Commerzbank noted, “Central banks are likely to continue to buy gold for the remainder of this year, thereby stripping supply from the market and contributing to climbing gold prices.”
Protesters have taken to the streets of Greece and Spain yet again. The fresh Greek government is currently working on a budget with the European Central Bank, International Monetary Fund, and European Commission in order to receive more bailout funds. The problem is that the Greek people have apparently reached a breaking point on austerity measures. Author and economist Vicky Pryce said, “They are trying to see whether they can have a stay of execution, and the protests are actually probably going to help, because it’s obvious that they can’t take any more austerity. The cost has been great for the Greeks … There’s just no light at the end of the tunnel at present.”
Spanish Prime Minister Mariano Rajoy seems to be gambling with his country’s well-being. The latest speculation out of Spain is that Rajoy is delaying a bailout request because he believes that issues in Italy will worsen, making the bailout terms more friendly for Spain when it does finally request a bailout. Raphael Gallardo of Rothschild Asset Management said that Spain “would be in better company and would suffer less stigma if it was to ask for a rescue at the same time as Italy. Italy needs further austerity efforts so those are probably more reachable with the support of the European Union and the ECB.”
At 9 a.m. (EDT), the APMEX Precious Metals spot prices were:
- Gold, $1,747.90, Down $17.50.
- Silver, $33.69, Down $0.27.
- Platinum, $1,621.60, Down $11.20.
- Palladium, $624.00, Down $16.80.