Spain formally requests EU aid

Uncertainty in Europe has led to American stock futures falling and Precious Metals prices remaining flat.  A two-day European Union summit meeting is set for later this week, but Peter Boockvar of Miller Tabak said that “nothing of substance will come” of the meeting.  He added that German is “just not giving into the requests for largesse that the rest of Europe wants them to disperse in the form of socializing debt obligations in the euro region.”

After informally making the request last weekend, Spain has formally requested aid from the eurozone.  Olli Rehn, the EU’s top economic official, said that it could happen in a matter of weeks, adding, “The policy conditionality of the financial assistance … will be focused on specific reforms targeting the financial sector, including restructuring plans which much fully comply with EU state aid rules.”

Gold seems to be in a holding pattern at the moment.  Macquarie analyst Hayden Atkins said, “The broader picture suggests gold could move a bit lower, but it will stay in this range until we see definitively whether the bulls will be right about the printing presses at central banks ramping up again, or whether they will hold fire until the world gets a lot worse.  It is in a wait-and-see kind of mode,” suggesting that increases in the Gold price are likely, and that it’s just a matter of ‘when,’ not ‘if.’

At 9:26 a.m. (EDT), the APMEX precious metals spot prices were:

  • Gold – $1,573.90 – Up $6.50.
  • Silver – $26.85 – Up $0.08.
  • Platinum – $1,435.90 – Up $2.70.
  • Palladium – $607.90 – Down $0.40.