WEEKLY METALS REPORT

Precious Metals Remain Under Pressure…

Thus far this week the precious metals have been under heavy pressure globally as the economic data has been very U.S Dollar friendly. All eyes are on the two day European Summit which began today as investors hope to receive a better understanding of the true economic condition and the debt crisis that exists in Europe. So far the information coming out the European Union has been as clear as mud. Greece was the first state that had its credit rating lowered followed by Portugal today and unfortunately will probably reveal several more states in need of a financial bail-out including Spain, Ireland, and Italy. Obviously with this many states needing financial assistance the pressure on the Euro has been devastating. Since a weaker Euro means a stronger Dollar and a halt to the precious metals upward momentum. It had been written in “FOCUS” a German based magazine that the vast Gold reserves in Europe would be used to help stabilize the European Union and give much needed confidence to the Euro. guess time will tell. There is now speculation that the European states in need of financial assistance may have to turn to the (IMF) International Monetary Fund for financial assistance which could promote inflation and possibly further erode the Euro. (more)