By Barry Stuppler - MintStateGold.com
The gold price is down $8.90 trading at $1,589.00 at 11am PDT in very active trading. The gold market is focused on news from the latest Eurozone economic summit, where they are working on a second bailout package for Greece and measures to prevent the spread of sovereign debt problems to other European countries. The latest news appears to be a major bail out of Eurozone debt, or QEE (Quantitative Easing Eurozone) The new Eurozone stimulus program has been described as a Super TARP by some market analysts. Eurozone delegates have agreed to bail out four countries and the banks that are holding their debt. After the preliminary reports, European banking stocks and the Euro’s values were moving higher, and Gold and Silver sold off, as sovereign default has temporarily been avoided. The initial precious metal reaction was negative, but like any monetary easing program this is very bullish for Gold and Silver in the long term. I’ll provide more information on this Eurozone bailout in my Weekly Market Report to be emailed out on Monday.
Silver is trading at $39.18, down $0.52 at 11am PDT in very active trading. Silver has been taking its price direction from the Gold market with higher volatility. Overnight in Asian and European markets, Silver traded up to $40.38 and I would expect to see bargain buying in Asia if Silver were to stay in this area when the Chinese and Indian markets open up.
LEGAL UPDATE ON THE 1933 $20 SAINTS
The government on Wednesday won the first round of a battle over the ownership of ten 1933 $20 Gold Saint Gaudens, now worth an estimated $75 million. A U.S. District Court jury decided, after five hours of deliberation, that the U.S. Treasury had properly taken possession of the $20 double eagles, which a Philadelphia family forfeited after discovering them in the safe deposit box of a deceased family member.
Other Important news that effects precious metal prices:
U.S. house prices rose a seasonally adjusted 0.4% in May, marking the second straight increase, the Federal Housing Finance Agency said Thursday.