Greece announced that it will not meet its 2011 and 2012 deficit forecasts and officials from the International Monetary Fund, European Union and European Central Bank, aren't releasing Greece's next tranche of bailout money -- €8 billion -- until mid-November. Reportedly Greece now has enough money to get it through October but the uncertainty will likely add to volatility throughout markets including gold, most experts say. "If you start seeing some kind of fiscal responsibility," said Streible, then that would crimp gold buying. But "the problem is there are 17 countries, there are too many cooks in the kitchen over there and they can't agree on a proper recipe," he said. European leaders signaled that they will make a decision regarding additional aid to Greece in late October, which was later than previously expected. According to a Bloomberg report, European financial ministers are mulling technical revisions for a second Greek bailout, which could mean bondholders will take a bigger hit on Greece debt. Gold mining stocks were getting hammered Tuesday. Barrick Gold ( ABX) was falling 5.80%% to $43.53 while Newmont Mining ( NEM) was shedding 3.86% at $60.83. Other gold stocks, Agnico-Eagle ( AEM) and Eldorado Gold ( EGO) were also trading lower at $55.42 and $15.55, respectively.
Alix Steel in New York. >To contact the writer of this article, click here: Alix Steel.