by Andrew Burger | June 28, 2012 12:46 pm
Gold and silver continued their dives Thursday morning as the European summit opened in Brussels and the Supreme Court upheld the constitutionality of a key element in “Obamacare.”
Spot gold was down 1.25%, bid at $1,554.60 an ounce at 11:27 p.m. The morning high reached $1,574.30, with the low at 1,549.70, according to Kitco market data. The London afternoon reference price was fixed at $1,558.50, $15 an ounce lower than Wednesday’s price fixing.
Spot silver was down 1.67%, bid at $26.49. The day’s high thus far was $27.13 and the low $26.16. The London a.m. reference price was fixed at $26.81, 2.5 cents an ounce lower than Wednesday’s reference price.
The Supreme Court upheld the keystone of President Obama’s health-care reform, which requires Americans to buy health insurance or pay a penalty.
“The Affordable Care Act’s requirement that certain individuals pay a financial penalty for not obtaining health insurance may reasonably be characterized as a tax. Because the Constitution permits such a tax, it is not our role to forbid it, or to pass upon its wisdom or fairness,” Chief Justice John Roberts was quoted in wrote in ABC News’ report.
Seasonally adjusted weekly claims for unemployment insurance benefits dropped 6,000 last week from an upwardly revised 392,000 to 386,000, the Labor Dept. reported. The less volatile four-week moving average was essentially unchanged at 386,750.
The euro-U.S. dollar exchange rate was falling for the fourth day running Thursday as the EU summit opened in Brussels. The euro was trading as low as $1.2406, its lowest level since June 4 early today.
Gold bullion prices were back below $1,570 an ounce, down some 0.5%, in London morning trading, BullionVault reported. “There’s no semblance of a ‘safe haven’ [in gold] at the moment,” BullionVault quoted Société Générale’s Robin Bhar from a Reuters report.
“But as the price goes lower, that bid does come back as you maybe get some renewed investor interest,” Bhar added, citing sovereign wealth funds and central banks.
Gold and silver trusts were down sharply in U.S. stock exchange trading.
Gold and silver mining ETFs were falling hard as well.
Gold mining shares were showing sizable losses across the board.
Silver mining shares were losing a lot of ground as well.
As of this writing, Andrew Burger did not hold a position in any of the aforementioned securities. Adrian Ash of BullionVault contributed to this report.
Source URL: http://investorplace.com/2012/06/gold-silver-drop-as-eu-leaders-meet/
Short URL: http://invstplc.com/1bDuc7h
Copyright ©2017 InvestorPlace Media, LLC. All rights reserved. 700 Indian Springs Drive, Lancaster, PA 17601.