Gold waits on summit, euro in survival mode

The Gold market continues its holding pattern on the eve of the European summit. The yellow metal started the day on an upswing and has now settled down as investors await news from Europe. Matt Zeman, head trader with Kingsview Finance in Chicago summed it up by stating, “There‘s no clear-cut direction (for Gold), everybody is waiting for the EU summit. You probably are seeing some positioning ahead of that.”

All eyes are focused on the European summit tomorrow, which will address the main topics of economic reform and recovery. The problem may not lie in the numbers; it may be in the leadership’s ability to work together. “The euro crisis is in some ways mind-bogglingly simple to solve … because it isn’t economics, its politics,” Jim O’Neill, chairman of Goldman Sachs Asset Management commented. “If Angela Merkel and her colleagues stood there together with the rest of the euro area … and if they behaved as a true union this crisis would be finished this weekend,” he added.

In the United States there is still major concern surrounding the future of the economy however, there are signs that point toward the positive. The durable goods report for May came out, and the numbers have improved for the first time in three months. The increase in durable goods is seen as an indicator that businesses have faith in the U.S.A. economy even with a lowered employment forecast and the struggles in Europe.

At 1:00 p.m. (EDT), the APMEX Precious Metals spot prices were:

  • Gold, $1576.80, Up $0.40
  • Silver, $26.98, Down $0.18
  • Platinum, $1412.80, Down $16.00
  • Palladium, $581.00, Down $13.70
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