Poor economic data and rising Grexit tensions, gold falls anyway.
Bullion.Directory precious metals analysis 17 February, 2015
By Christopher Lemieux
Senior Analyst at Bullion.Directory; Senior FX and Commodities Analyst at FX Analytics
Investors are clearly not looking for any protection today with precious metals plunging on the back of poor economic data both in the US and abroad. The Grexit ordeal is growing, and the dollar is modestly lower.
Earlier this morning, the data out of the United Kingdom was horrendous. A series of consumer price and producer price indices indicate continued deflationary pressures, particularly on the PPI data sets. In the US, the Empire State manufacturing index fell over two points to 7.78, as new orders continue to lag.
The Grexit tensions are rising. SYRIZA’s Alexis Tsipras is holding strong to his promises to the Greek people, while Germany’s Finance Minister, Wolfgang Schauble, said Greece needs to decide whether it wants to extend the bailout program.
Both sides will not budge, and it is beginning to look like something out of D.C.
The dollar has not really shown much direction since hitting 95.5, ranging between 95 and 93.25. The dollar index is modestly lower.
Gold is challenging $1,200 per toz., while silver is down almost six percent to $16.30 per toz.
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