Gold and silver were down sharply as European Union leaders are due to meet in Brussels tonight. Recent EU monetary policy initiatives have run out of steam and the economically depressing effects of austerity measures are biting, which has led to political turnover amid the EU effectively experiencing its second recession of the past four years.
Spot gold was down 1.66%, bid at $1,542.20 an ounce as of 11:00 a.m. Prices reached only as high as $1,565.60 and as dropped as low as $1,533.50, according to Kitco market data. The London afternoon reference price was set at $1,549, a whopping $33.50 an ounce below Tuesday’s afternoon reference price.
Spot silver was showing a 2.94% loss, bid below $28 at $27.37 an ounce. The morning high as of time of writing was $28.02, with the low reaching $27.04. Wednesday’s reference price was set at $27.76, 31 cents an ounce below Tuesday’s price fix.
Today’s EU summit in Brussels will be the first for new French President Francois Hollande, whose election is seen as adding to the impetus for the EU to take pro-growth and job-creating fiscal and financial actions. No firm policy actions are expected to be announced since today’s meeting is scheduled as preparation for another summit meeting at the end of June.