The Daily Market Report: Gold Dips, Downside Limited by Greek Worries, Possible Texas Repatriation

16-Jun (USAGOLD) — Gold retreated in the range, weighed intraday be a bit of a bounce in the dollar and firmer stocks. However, the downside remains limited by uncertainty about this week’s FOMC meeting and deterioration of the Greece situation.

Greek PM Tsipras continues to hold a hard-line, implying that their final offer is on the table. Greece reportedly won’t present a new plan at the meeting of EuroGroup finance ministers on Thursday.

Mr. Tsipras also used some rather incendiary language in blaming creditors for the predicament that Greece is in. He accused the ECB of “asphyxiating” his country, while claiming the IMF had “criminal” responsibility for the Greek crisis.

He’s talking about the institutions that have tried to bail Greece out of a predicament of their own making. Institutions that he hopes to get more money from to avoid default and possible Grexit. This is not the tone of a man negotiating in good faith and recognizing the role that Greece has played in the implosion of their own economy.

Default expectations are ratcheting higher. That should continue to underpin the gold market.

Texas governor Abbot signed into law on Friday a bill that will allow the state to create its own gold and silver depository. Once the depository is built, it is expected that Texas will repatriate $1 billion dollars worth of gold from the Fed’s vaults.

In light of the repatriation request in recent years by Germany, Austria and Holland, one might view this as evidence of a growing mistrust of central banks. Perhaps more specifically . . . the Fed.

There is a provision written into the bill that seeks to protect gold and silver stored in the Texas facility from various forms of federal intervention:

Presumably Texas wouldn’t have added that section if they didn’t see there as being some risk of such an event. And one might wonder what type of crisis might trigger such action.