Precious metals continue to ride eurozone train

The concerns out of the eurozone continue to pull down the euro and strengthen the U.S. dollar, thus pulling down prices. Gold in particular has remained relatively fluid within a certain price range of $1,530 to $1,590. However a key price indicator in the short term continues to be $1,600 an ounce. However, euro pressure continues to be in the driver’s seat for prices. An unidentified international dealer said, “If we break above $1,600 and even go higher to confirm the bull trend, we will see more buying.”

Greek citizens continue to hold out for hope that money will be found to help bail the country and its citizens. The prevailing feeling is that Europe will not just cut their losses and kick Greece out of the eurozone. An alarming, almost de ja vu-ish feeling permeates through the country as some citizens say, “There’s a lot of money in this country, they just need to tax the rich and it would solve so many problems.” Does that sound familiar? The Greek citizens voice their displeasure through their voting results, with another election coming next month and fears that the drachma will come back.

The issues surrounding Greece do have some impact on the U.S. and should not be taken lightly. There are a few issues in particular including the U.S. banks’ susceptibility to eurozone debt. The weakening power of the euro as a currency could mean that U.S. goods would also become more expensive, diminishing the value of those goods. As well as the global impact that could be felt by other global powers like China.

At 8:01 a.m. (EDT) – the APMEX Precious Metals spot prices were:

  • Gold – $1,579.50 – Down $10.70.
  • Silver – $28.29 – Down $0.12.
  • Platinum – $1,460.90 – Down $2.60.
  • Palladium – $613.70 – Up $0.90.
Enhanced by Zemanta