Gold and Silver Edge Lower After Greece Deal
By Eric McWhinnie | November 28, 2012 7:11 AM EST
Both precious metals showed a bit of weakness as the U.S. dollar climbed higher after the Greece deal. Eurozone finance ministers and the International Monetary Fund finally reached an agreement to reduce Greece’s debt and clear the way for the release of the next batch of aid loans. The insolvent country will receive a 34.4 billion euro, or $44.7 billion, loan installment in December.
As part of the agreement, the creditor countries decided to cut the interest rates on already extended bilateral loans from the current 150 basis points above financing costs to 50 bps, suspended interest payments for a decade to give the nation additional time to repay, and designed a new bond buyback plan.
Don’t Miss: Are Hedge Funds Still Interested in Gold?
The measures will supposedly help reduce Greece’s debt from 190 percent of gross domestic product in 2014 to the IMF-ordered 124 percent of GDP in 2020. The IMF agreed to raise its previous target of 120 percent.
In afternoon trading, the SPDR Gold Trust (NYSEARCA:GLD) edged 0.40 percent lower, while the iShares Silver Trust (NYSEARCA:SLV) declined about 0.30 percent. Gold miners (NYSEARCA:GDX) such as Barrick Gold (NYSE:ABX) and Goldcorp (NYSE:GG) dropped 1.50 percent and 4.05 percent, respectively. Meanwhile, silver names such as Silver Wheaton (NYSE:SLW) and Silvercorp Metals (NYSE:SVM) fell 0.85 percent and 3.30 percent, respectively.
Investor Insight: Should Gold Investors Be Worried About Gold?
If you would like to receive professional analysis on miners and other precious metal investments, we invite you to try our premium service free for 14 days.
Disclosure: Long EXK, AG, HL, PHYS
Join the Conversation
- 5 Proofs Russia is Geared-Up for Shooting War with U.S. and Can Win Future Nuclear Showdown
- Target’s ‘Surprise Doorbusters’ Black Friday 2014 Deals On TV Sets, Entertainment Centres, DVD Players And More
- IKEA Black Friday 2014 Ad Includes Discounts On Home Furnishings, Appliances, Kitchen Designs, Beds, Sofas, Mattresses And Toys
- T-Mobile’s Black Friday 2014 Deals On Apple iPhone 6, Samsung Galaxy Note 4/Edge, Nexus 6, HTC One M8, LG G3, iPad Air 2 And Mini 3
- ISIS Drug Transit From Afghanistan To Europe Confirmed By Russia: Money Goes Into Terror Funding And In New Recruitments
- ISIS Kidnaps Iraqi Defence Minister’s Family, Executes Female Parliament Candidates
- Bill Clinton At It Again, Caught By Camera In Jerusalem Peeking At Woman’s Breast