by Andrew Burger | June 27, 2012 12:48 pm
Spot gold was marginally higher and silver slightly lower Wednesday morning ahead of the start of the EU summit tomorrow and better-than-expected reports on pending existing-home sales and U.S. durable-goods orders.
Spot gold was higher, up 0.15%, bid at $1,574.90 an ounce at 10:39 p.m. The morning high reached $1,585.10, with the low at 1,561.80, according to Kitco market data. The London afternoon reference price was fixed at $1,573.50, $2.50 an ounce lower than Tuesday’s price fixing.
Spot silver was down 0.07%, bid at $27.09. The day’s high thus far was $27.47 and the low $26.60. The London a.m. reference price was fixed at $26.835, 60.5 cents an ounce lower than Tuesday’s reference price.
The National Association of Realtors’ index of pending previously owned home sales rose a greater-than-expected 5.9%, to 101, in May, matching a two-year high set in March.
Durable-goods orders rose a greater-than-expected 1.1% in May, the first rise in three months, the Commerce Department reported. Excluding orders for transportation equipment, which is volatile, orders for durable goods rose 0.4%.
The Spanish government said it intends to continue pushing for the €100 billion ($125 billion) eurozone emergency funds it has applied for to be lent directly to banks rather than through the government, as eurozone rules stipulate. Germany has been adamantly opposed to direct eurozone lending to banks without greater government fiscal and private-sector banking-sector integration.
The euro continued to decline against the dollar in advance of an EU summit Thursday and Friday. Nothing immediately significant is expected to occur at the summit given German PM Angela Merkel’s recent statement that there would be no collective sharing of the eurozone’s collective debt liabilities as long as she lives.
Gold bullion prices dropped as low as $1,565 an ounce, down 1.4% on the week, in London morning trading Wednesday, BullionVault reported.
“We’re in a bit of a period over the summer when we are going to see very little meaningful action by policymakers in three key regions — Europe, the U.S. and China,” BullionVault quoted Daniel Brebner, head of metals research at Deutsche Bank. “Pressures in the gold market will continue to mount…I don’t think there’s any kind of catalyst near term for a significant rebound in gold prices.”
Gold and silver trusts were headed lower again Wednesday morning in U.S. stock exchange trading.
Gold and silver mining ETFs were headed lower as well.
Gold mining shares were showing sizable morning losses.
Silver mining shares were losing ground, Hecla Mining the exception.
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-weak-ahead-of-eu-summit/
Short URL: http://invstplc.com/1bDu9Zi
Copyright ©2015 InvestorPlace Media, LLC. All rights reserved. 700 Indian Springs Drive, Lancaster, PA 17601.