Precious metals prices have remained relatively steady, rising a bit during early morning trading. Some analysts feel that the safe haven appeal of gold is borne not of the eurozone worries themselves, but actually what those worries could do to the U.S. economy. According to analyst Nic Brown, “Gold is sitting waiting for something to happen, but I would argue it is waiting for something to happen in the United States, rather than Europe. (We need) more clarity in the United States over whether the economic data is going to improve again…or whether the weakening data is a sign of slower economic growth, and that therefore the Fed will have to do something. For me, the focus is definitely on the U.S. side of the Atlantic. In the meantime, gold is going up, down or sideways dependent on what is going on in the euro/dollar rate, and there isn’t a great deal else that is moving it around.”
In an interesting turn of events, outspoken Austrian finance minister Maria Fekter put Italy right back in the eurozone spotlight with Spain. However, Italy does not have near the exposure that Spain does considering its much lower unemployment rate and lack of banking exposure to the real estate crisis. In Fekter’s opinion, “Italy has to work its way out of its economic dilemma of very high deficits and debt, but of course it may be that, given the high rates Italy pays to refinance on markets, they too will need support.” Meanwhile Italian Prime Minister Mario Monti called her remarks “completely inappropriate.” The nation of Cyprus could also be looking for a bailout, becoming the fifth country to make that request, with its own banking issues bringing the need to light.
At 9:01 a.m. (EDT) – the APMEX Precious Metals spot prices were:
- Gold – $1,604.80 – Up $7.80.
- Silver – $28.93 – Up $0.23.
- Platinum – $1,446.50 – Down $4.80.
- Palladium – $624.00 – Down $1.60.