Gold Spot Price Open: $1,202
Gold Spot Price Close: $1,188
Change in Gold Spot Price: -$14
Silver Spot Price Open: $16.19
Silver Spot Price Close: $16.23
Change in Silver Spot Price: +$0.04
Gold and silver have begun the new trading week uneventfully as the metals posted mixed results to finish out Monday. When all was said and done, gold lost about fifteen dollars while silver managed to gain a few pennies. Platinum and palladium both got the week off to a horrid start, with platinum down by more than twenty dollars and palladium down about fifteen.
Eyes Remain on Greece, but Safe-Haven Demand Fading
For the better part of the last month or so, we have regularly commented on the fact that uncertainty over Greece’s future as a member of the European Union is driving safe-haven demand for precious metals. Though that much is still true to some extent, we are seeing investors begin to disassociate themselves with all the concern surrounding Greece’s debt negotiations. Basically, investors are not so fervently acquiring safe-haven gold and silver simply because they do not see Greece’s potential exit from the European Union as much of a big deal. Though we will still assuredly see the market react to every happening until the debt negotiations are through, the affect they have on the marketplace will likely not be as intense as it would have been a few weeks ago.
Unlike in 2011 when Greece’s financial problems first came to light, investors are now more prepared and financially stable to deal with the uncertainty being created by Greece. Rob Waldner, chief strategist for Invesco Fixed Income, “There are a couple of big differences between the current situation and the previous Greek crisis in 2011 that indicate that impact on U.S. investors should be less.” One of those big differences is the fact that, no matter what happens with Greece, the private sector will not have to deal with the outcome. In 2011, this was not the case as much of Greece’s debt was held by private investors.
Still, despite the fading impact on precious metals spot values, you can bet that the global marketplace will continue fixating their attention on Greece’s negotiations until there is no more negotiating to be had.
Equities Put Forth Nice Rally
Continuing our focus on Greece, today saw US and European equities do particularly well thanks to rumors that a deal between Athens and its creditors may be reached at some point during the week. Adding credence to these rumors is the fact that, over the weekend, Greece submitted yet another debt-repayment plan to IMF and EU creditors.
Today and tomorrow will see high-ranking officials from both sides meet formally in order to strike an official, lasting deal. With all of this being said, there are still quite a few people who do not believe that a deal will be reached in time. I am of the opinion that no deal will be reached, but have no real way of knowing whether or not this will prove to be the case. It just seems that, at this point, the effort being made by Greek negotiating teams can best be described as “too little, too late.”
Still, it will be interesting to see the rest of the week play out as well will assuredly be receiving a lot more info on the Greek Debt Crisis.
Wrap-Up
Though equities around the world partook in a rally of sorts today, the overall tone of Monday was more subdued than anything else. There wasn’t much to talk about apart from the Greek debt debacle, and I expect that much to continue as the week moves forward. Some economic data from the United States is due out this week, but at this point it is difficult to say what kind of impact it will have on global markets.
