Gold Spot Price Open: $1,202
Gold Spot Price Close: $1,201
Change in Gold Spot Price: -$1
Silver Spot Price Open: $16.25
Silver Spot Price Close: $16.15
Change in Silver Spot Price: -$0.10
Gold and silver cooled off on Friday after Thursday’s impressive rally, but were able to mostly retain their positions as a result of said rally. When all was said and done, gold lost about one dollar while silver lost somewhere in the neighborhood of ten cents. Platinum moved forward by nearly 4 dollars, but palladium backtracked just a bit.
More Failed Negotiations as Greece Faces EU Exit
European stock and bond markets remained on-edge on Friday as reports filtered in about another round of failed debt restructuring negotiations. Now, with the end of the month little more than a week away, many European nations have come out and said they are actively preparing for Greece to leave the Euro. People and politicians in and around Athens do not seem so phased about the lack of progress being made at the negotiating table, but reports claim that Greece’s government has been pulling money from banks at every turn.
Now, the European Central Bank is scheduled to have an emergency meeting over the weekend in order to discuss how much financial aid they will be able to provide Greek banks with. As you can clearly see, the situation across Greece and Europe is slowly but surely deteriorating. For gold and silver, this most recent report of failed talks has only helped to boost demand for safe-haven metals. On a day where you might expect to see drastic corrective pullbacks as a result of Thursday’s gains, such has not proven to be the case.
What the Future Holds for Gold and Silver
For precious metals, we are at a bit of a crossroads as spot values remain stuck in the small range that they have carved out over the past few months. Thanks to the Fed’s more dovish approach to the raising of interest rates in the United States, there is a growing system of belief that holds that spot values will be able to make nice moves forward thanks to the new outlook on rate hikes.
For now, the attention of the marketplace will be on Greece as the world hopes to see that situation sorted out over the course of the next week or two. As it stands, the uncertainty facing the Greek debt debacle is providing a nice platform for gold and silver to move forward from. No one is really sure what Greece’s leaving the euro will mean for the rest of Europe, so investors are seen grabbing on to gold and silver in order to protect themselves.
Wrap-Up
All in all, this has been a fairly eventful week. With much of the early parts of the week dominated by focus on the June installment of the Federal Open Market Committee meeting, investors have now more or less changed their minds and are not expecting drastic interest rates anytime soon. While most are expecting to see rates move forward at some point this summer, the extent to which rates are hiked is thought to be much less than what was thought originally. In addition to focus on Greece, investors will have their attention glued to any and all US economic data released going forward as to gain a better idea of when exactly the first round of rate hikes will ensue.
