Two major headlines over the weekend. The first did not yield the results I expected for gold and company, while the second may have calmed fears and weighed on gold and company.
- Greek voters loudly said “No” over the weekend as a firm line has now been drawn in the sand between Greece and their creditors. In addition, their finance minister has resigned this morning as turmoil within Greece and the EU continues to build.
- Secretary of State John Kerry said the U.S. and Iran have found the groundwork to build on and real progress has been made with regard to the future of Iran’s nuclear program.
Uncertainty brought buyers and higher prices to our market when trading resumed yesterday along with a stronger USD and a selloff in equities as a Greek exit from the Eurozone becomes a greater possibility. The early rally in our market was short lived however, and in early U.S. trading, gold and silver are back to $1,165.00 and $15.60 where they spent much of late last week. Platinum and palladium are both down $30.00 as a broad selloff in industrial commodities and base metals weigh heavily. In addition, crude oil is down over 4 percent this morning. While any headline that is Greece related has the potential to move our market, this week it “feels” like gold and silver could be vulnerable to the downside, as gold’s disappointing performance thus far is hard to explain. Keep a close eye on the USD as it should give the signal for where gold is heading in the coming days.