Housing and eurozone boost Gold’s safe haven appeal

Precious metals prices have been on quite the journey today, but as the eurozone issues continued to simmer and the disappointing domestic housing data was released, the early morning losses were replaced with gains throughout the

stock market

stock market (Photo credit: 401K)

mid-day and afternoon. Portfolio manager James Dailey said, “This morning’s reversal is indicative that people are starting to come to grips with the fact that there isn’t any fast and easy solution in Europe. And if things start to really get out of hand in Spain and Italy, that means gold can catch a bid.” Platinum price was also down with other industrial metals due to economic concerns.

The news out of the eurozone still involves Greece, but has really picked up with concerns building for Spain. Spanish banks continue reeling over the burst property bubble and flailing stock markets surrounding the banking sector. EU Economic and Monetary Affairs Commisioner Olli Rehn has offered a couple of options for the Spanish government to consider, including another year to work out a solvent budget or direct financial aid to distressed banks. In a move of concern the U.S. Treasury sent top official Lael Brainard to speak with Greece, Germany, Spain and France.

Domestic stock markets fell on disappointing housing data, Greece’s future in the euro currency and the solvency of Spanish banks. Overseer Hayes Miller said, “It’s a high-anxiety market… We’re not anywhere near the end of Europe’s debt crisis. In the U.S., economists are making the point that if housing were to stabilize, consumption could grow. The question is: what’s going to allow the housing market to stabilize?”

At 5:05 p.m. (EDT) – the APMEX Precious Metals spot prices were:

  • Gold – $1,563.60 – Up $13.10.
  • Silver – $27.97 – Up $0.09.
  • Platinum – $1,402.60 – Down $27.50.
  • Palladium – $608.00 – Up $2.00.
Enhanced by Zemanta