No Deal On Greece, Gold and Silver Flat, Stocks Edge Higher

EU leaders and the IMF were unable to reach an agreement on reducing Greece's debt burden as both sides sparred on the best method to put Greece on a sustainable fiscal footing. Both sides did make soothing words that an agreement would be reached when they next meet on November 26th. Markets were quick to react to the initial headlines with the EUR-USD dropping along with stocks. However, markets were equally quick to recover with stocks actually showing a marginal positive bias.

Tensions between Hamas and Israel continue to top headlines with a bus bomb explosion near military headquarters in the Israeli commercial hub leaving 21 people hospitalized. Damascus-based Popular Front for the Liberation of Palestine, not under the direct authority of Hamas, claimed responsibility. Secretary of State Hillary Clinton is in the region and holding talks with Israeli and Palestinian leaders to end the conflict. Full Bloomberg article.

Spot gold prices are showing little direction, down $0.35 at $1,727.06 per troy ounce. Spot silver prices have edged lower by $0.05 to $33.13. The gold-silver ratio edged lower to 52.07. Platinum prices are down $3.19 at $1,577.00 per ounce. Palladium prices are outperforming, up $2.00 at $646.00.

Commodities outside precious metals are flat to higher. WTI crude futures are rebounding from Tuesday's declines, up $0.94 to $87.69. Copper futures are edging lower, down $0.01 to $3.5155 per pound. 

Treasuries are holding steady despite the recovery in risk assets following the Greek dissappointment with the yield on the benchmark 10-year Treasury yield unchanged at 1.57%. The EUR-USD is actually higher, recouping all the losses seen following the inability of the EU and IMF to come to terms on Greece. The EUR-USD is up 0.05% at 1.2824. The pair had fallen as low as 1.275.

Other News

Initial claims for unemployment fell to 410k, better than the 415k that had been expected, and down from the prior month's upwardly revised 451k, originally 439k.

The November PMI Manufacturing Flash Index rose to 52.4, above the consensus estimate of 51.0, and up from the prior month's 51.3.

Consumer sentiment for November is scheduled for release at 9:55 am. The consensus forecast sees a slight drop to 84.0 following the prior month's 84.9.

The Conference Board's index of Leading Indicators is scheduled for release at 10:00 am. The consensus forecast sees a 0.2% rise following the prior month's 0.6% advance.

Take Advantage

Gainesville Coins is offering the 2012 1 oz American Gold Eagle at as low as $67.99 over spot. Gainesville Coins is offering the 1 oz Silver Buffalo Round at as low as $0.79 over spot.