by Andrew Burger | June 19, 2012 1:14 pm
Gold and silver were heading lower on Tuesday morning as G-20 leaders meet in Mexico and the Federal Reserve Open Market Committee (FOMC) meets in Washington, D.C.
Spot gold was 0.66% lower as of 12:20 p.m., bid at $1,617.90 an ounce. The morning high reached $1,632.70, and the low $1,616.60, according to Kitco market data. The London afternoon reference price was fixed at $1,625.50, $10 an ounce higher than Monday’s price fixing.
Spot silver was moving lower, down 1.32% and bid at $28.36. The day’s high thus far was $28.95 and the low $28.24. The London a.m. reference price was fixed at $28.81, 38 cents higher than Monday’s reference price.
Aiming to deal more effectively with the ongoing debt crisis in Europe, eurozone leaders at the G-20 summit in Los Cabos, Mexico, spelled out the steps they will take to forge a “more integrated financial architecture.”
ZEW’s monthly survey of German economic sentiment fell to -16.9 in June, the fastest rate since October 1998.
Greece’s new governing coalition seems set for another clash with Germany and other eurozone nations as New Democracy-Pasok coalition leaders were preparing to ask to extend an agreed-upon debt-reduction schedule.
U.S. chain-store sales remained soft, unchanged in the June 16 week, according to the latest ICSC-Goldman survey. Year-over-year growth of 3.6% was the highest since mid-May, but the less volatile four-week moving average, unchanged at 3.1%, is at a three-month low.
Gold bullion fluctuated around the $1,630-per-ounce level in London morning trading Tuesday, BullionVault reported.
“For the moment, we expect policy decisions from the Fed to influence the Gold Price more than risk appetite linked to the Euro crisis,” BullionVault quoted Phillip Futures Singapore analyst Lynette Tan. “We would be quite surprised if we saw no [Fed policy] easing this week,”according to a research note from Goldman Sachs US chief economist Jan Hatzius.
Gold and silver trusts were down Tuesday morning.
Gold mining ETFs were flat to lower, while the Global X Silver Miners ETF was in positive territory.
Gold mining shares were showing morning losses Tuesday.
Silver mining shares were showing mixed results.
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.
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