• Gold, $1,574.20, Up $14.90.
• Silver, $28.58, Up $0.34.

Precious Metals prices have been relatively volatile throughout the day, ultimately settling higher and bringing an end to a downward trend over the past few days. The  American dollar was down earlier in the day but rallied through the afternoon. There was also some technical maneuverings ahead of a change in futures contracts. Eurozone fears still continue to fester as a European Union summit voiced support for Greece to remain in the eurozone but offered nothing substantial in terms of a plan to make that happen.

Most eurozone citizens are still supportive of Greece remaining in the eurozone despite the possibility that country might be forced to exit. Support for remaining in the eurozone is strongest in Greece and lowest in Germany and Italy. However,  support is still well above 50 percent for Greece to remain  in the eurozone. John Wright of market researcher Ipsos said, “Regardless of the turmoil and the debate that’s going on in these crucial countries, it would seem that for the time being, people want to stick with the euro. … Maybe it’s an issue of ‘if one goes down, we all go down together.’ But nevertheless, given the options, the public in these crucial countries seem to be on side. People aren’t willing to abandon it not yet.” Meanwhile, the  Syriza party continues to build momentum  ahead of Greek elections. The Syriza party is anti-austerity and headed by Alexis Tsipras.

Despite the upheaval in Europe, the United States’ economy continues to push forward. The debt problems in Europe and China could start affecting American factory data soon, with the Purchasing Managers Index slowing from 56.0 in April to 53.9 this month. Paul Edelstein said, “We are growing at moderate pace of two to two-and-a-quarter percent, but  we have some headwinds  that are starting to assert themselves, particularly coming from Europe.”

At 5 p.m. (EDT), the APMEX Precious Metals spot prices were:

• Gold, $1,560.20, Up $10.30.
• Silver, $28.36, Up $0.76.

Gold is up today as softer than expected U.S. manufacturing data pushed the dollar negative to the euro. Concern over Greece and its potential exit from the euro zone and its economic impact had pushed the euro and gold to its lowest point in over 4 months. " All three times we've come close to $1,500 over the last year, starting with the end of December, we've had a bounce back," said Nikos Kavalis at RBS. " It looks like  this is a level the market isn't happy to break.”  Data from the International Monetary fund also helped boost Gold prices as the Philippines made their largest purchase of the metal in over 4 years. 

While preparing contingency plans for Greece’s exit, European Union leaders are asking Greece to complete the reforms required under is planned bailout. “We want Greece to stay in the euro, but we insist that Greece sticks to commitments that it has agreed to," German Chancellor Angela Merkel told reporters after a Wednesday evening summit in Brussels.

At 1:00 p.m. (EDT) – the APMEX precious metals spot prices were:

• Gold - $1,564.90 – Up $15.00.
• Silver - $28.26 – Up $0.65.

Gold retreated today as Europe continued to fan flames of fear worldwide. Markets were in selloff mode, as more than two-thirds of stocks on the New York Stock Exchange lost value, and oil prices fell below $80 a barrel for the first time in eight months. “Concerns over the prospects of  Greece leaving the European Union  and the resulting effect on the eurozone’s future economic health had sellers out in force,” said Alan Herbst, a principal at Utilis Advisory Group.

Despite Gold’s recent drop in price,  many analysts remain bullish  on the long term prospects. “I remain constructive on Gold as a store of value, or an alternative currency, but instead investors are using it as a source of cash or stepping over to go to the more traditional bastions of safety, as in the German bund, the U.S. dollar or Treasuries,” said Mark Luschini, chief investment strategist at Janney Montgomery Scott. It seems that investors are using Gold as an insurance policy, and filing claims to raise their cash positions.

Speculation abounds over  who will be tapped to fill the job of Treasury secretary  once Timothy Geithner steps down after November elections. The new secretary undoubtedly will have a full plate of issues to deal with, from a trillion dollar deficit in the American budget to a debt crisis in Europe and our strategic relationship with China.

At 4 p.m. (EDT), the APMEX Precious Metals spot prices were:

• Gold, $1562.80, Down $15.30.
• Silver, $27.86, Down $0.41.

Gold’s price drop has been well documented during the past few weeks. Many factors have led to the shift in price.  However, in the view of many investors, this is an opportunity, based on a closer look at the numbers.  CNBC contributor Dennis Gartman said, “The public is massively bearish, and that tells me it’s time to be bullish.” He added, “Most people don’t think Gold and stocks can go higher together, but I expect to see them trade dramatically higher over the course of the next several months. The trend is now higher.”

News from the World Bank could be a negative sign for the Asian region as a whole. Reports show that growth in the region has slowed from 10 percent in 2010 to 7.6 percent this year.  The main culprit is China, where the slowdown has had the largest effect.  However, the reported growth rates are much stronger than the growth rate in the United States, where the economy grew only 1.7 percent last year.

Germany has come up with a new idea to put an end to the financial disaster that is Greece. The plan would call for Greece to stay in the European Union but adopt its own currency, the “Geuro.”  This idea has many positives.  First, it would give Greece a chance to balance its budget without support from lenders. It would also allow Greece to reject the austerity program that it has opposed from the start. Speaking about a possible separate currency for Greece, Thomas Mayer of Deutsche Bank said, “Initially we would expect a large depreciation, but the Greek authorities would have the power to stabilize or even strengthen the exchange rate of the Geuro against the euro, via prudent fiscal policy and structural reform, so as to keep the door open to a future return to the euro.”

At 1 p.m. (EDT), the APMEX Precious Metals spot prices were:

• Gold, $1545.30,Down $32.80.
• Silver, $27.42, Down $0.85.

Precious Metals prices are down 1 to 2 percent this morning as investors await news from an  informal summit meeting in the eurozone. David Morrison of GFT Markets said, “Although this is little more than a taxpayer funded dinner for eurocrats ahead of the main summit in June, any further signs of a rift between Germany and France will see the euro and equities fall further.”  Lately, as the euro has moved, so have Precious Metals.

Germany and France are far from the only topic of note in the eurozone. The main focus at the moment seems to be the  potential exit of Greece from the group. Goldman Sachs Asset Management chairman Jim O’Neill said, “The markets are putting together a higher probability for the end game in the eurozone,” in reaction to high demand for Germany’s two year, no interest bonds being sold at the lowest yield ever. Speaking on the ramifications of Greece leaving the bloc, he said, “Once one exits, it breaks the notion that it’s a true currency union, and that is a big moment.”

Oil markets, which have historically held a positive correlation to Gold, have been uneasy amid sanctions placed on Iran and other happenings in the Middle East. A  meeting between Iran and six world powers, including the United States, is taking place to continue to attempt to persuade Iran to scale back its nuclear program. Iran has made it clear that it will not be intimidated. However, Russia’s foreign minister said the impression is that Iran is “ready to seek agreement on concrete actions.”

At 9 a.m. (EDT), the APMEX Precious Metals spot prices were:

• Gold, $1,563.10, Down $15.10.
• Silver, $27.87, Down $0.40.