Gold News & Info

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— Gold declined 0.5% today as concerns over global growth continue to weigh on risk assets. The prospect of a hard landing in China combined with renewed eurozone concerns after the European Commission�s economic sentiment indicator unexpectedly slipped for March. The dollar strengthened against the euro, also weighing on gold. Silver gained 0.6% while platinum and palladium both turned lower.

At the close: April gold slid $7.80 to $1,650; May silver gained 17 cents to $32.01; April platinum lost $12.60 to $1,622.60; and June palladium slipped $2.55 to $644.80 an ounce.

As 1.6 million Spanish workers stage an angry nationwide strike over austerity measures ahead of the government�s latest budget plans, concerns are mounting that Spain could become the next Greece, requiring massive debt restructuring to prevent sovereign default. The eurozone's fourth largest economy is mired in its second recession in three years with a crashed housing market and unemployment running at 23%. Loan defaults have reached the highest level in 18 years and yields on 10-year Spanish bonds have shot up to an eight-week high.

Zero Hedge published a report today showing that, including liabilities to the EU for bailout loans, Spain's actual debt-to-GDP ratio is more than 133%–uncomfortably close to Greece's 165% in 2011 and nearly twice the official ratio of 68%. It's worth noting that strikes also preceded Greece's crisis as its population rebelled against austerity measures. If Spain's sovereign debt risks deepen, we'd expect safe-haven demand for gold to increase in the eurozone.