Gold Spot Price Open: $1,192
Gold Spot Price Close: $1,194
Change in Gold Spot Price: +$2
Silver Spot Price Open: $16.82
Silver Spot Price Close: $16.86
Change in Silver Spot Price: +$0.04
Precious metals managed to move forward on Tuesday, but not by very large margins. When all was said and done, gold managed to gain about a dollar while silver improved by a few pennies yet again. Platinum ended the day having gained about 10 dollars, though palladium was finished by little more than 5 dollars.
Greece Closes In On Deal
According to a few different reports from Europe today, Greece’s creditors are closing in on finishing a deal that they will then present to the Greek government. The deal is said to force Greece to do a few things that it does not want to do, but with an IMF debt repayment of over $325 million due on Friday, they do not have much room to bargain. This is especially true if, like so many reports say, the Greeks are as cash-strapped as they claim to be. The rumors regarding a possible Greek deal have helped the Euro regain a lot of ground it has recently lost, which did not bode well for the US Dollar today.
Though reports today claim that a deal is being closed in on, I have my doubts. What’s more, even if Greece is able to make this Friday’s payment, there are three more that will come in quick succession, and I am not so sure they will be able to keep up.
For the wider European Union, this whole Greece situation is a bit of a negative light shining from an otherwise positive economic situation. At seemingly every turn, the European Union has emitted mostly positive economic numbers this year, but with Greece causing investors to worry, not everyone is convinced that everything is all well in Europe. Moving forward through the next few weeks, I think we will see some decisive action across Europe, whether that will be Greece reaching a deal with creditors or Greece leaving the EU, however, remains to be seen.
Dollar Decline Not Doing Metals Any Favors
Even though the Dollar took a hit today, this price action didn’t do precious metals any favors because the safe-haven demand we have been seeing from Europe has taken a bit of a backseat this week. With European investors keen on a deal being reached between Greece and its creditors, the allure of gold and silver is not what it was a week or two ago.
Right now, both gold and silver seem to be stuck in between a rock and a hard place, unable to move too far in any one direction. This has been the case for the past few weeks and is likely to persist thanks to erratic market conditions and uncertainty abounding. The European Central Bank is kicking off their June meeting this week, with Greece expected to be atop the talking points.
Wrap-Up
Other than continued discussions regarding Greece’s future as a country, today was not the most eventful across the global marketplace. Tomorrow, however, we will see a bit of a difference as the US Labor Department’s reading on non-farm payrolls growth for May is expected to be released. The payrolls data is so important because it will likely impact the way investors think about the future of interest rates in the United States. Though today was slow, I highly doubt that such will remain the case through the rest of the week.
