After a surge in prices last week that pushed gold (NYSE:GLD) futures to all time highs over $1,600, the precious yellow metal has finally begun to recede in trading in the last few days, shedding nearly another $10 in trading today to close at $1,587 today. Matt Zeman of Kingsview Financial talked about gold’s moves today, noting that the market’s gains may be somewhat illusory, “The EU lacks credibility in a lot of investors’ minds…Whether or not this debt deal gets done, the fact of the matter remains that sovereign-debt issues are here to stay.”
European leadership made progress on a new bailout deal for Greece that would likely give the can a big boot down the road, offering the financially crippled nation a larger debt relief package. Here in the states default concerns continue to ramp up with little to no progress achieved in debt talks today. The S&P warned again that there is a 50% chance it will cut its AAA rating on U.S. debt (NYSE:TLT) if no deal is reached in the next 90 days. If government talks on raising the debt ceiling and cutting deficit spending continue to stagnate, it is likely that gold futures could surge to new highs as investors seek a haven from equities markets.
Silver (NYSE:SLV), a metal that normally trades somewhat in tandem with gold, also closed down considerably today, losing 1.5% to close at $38.95 per ounce. Copper also ended the day lower, dropping 1.2% to settle at $4.38 per ounce. Other precious metals platinum and palladium surprised today, moving against falling gold, closing with gains of o.7% and 1.9% respectively.