The following is a commentary from APMEX APMEX Closing Gold & Silver Market Report -- 7/13/2011
by Robert Davis July 13, 2011
MOODY'S PLACES U.S. BOND RATING ON REVIEW -- Citing the "rising possibility" that political leaders in the U.S. won't come to an agreement on raising the debt limit, Moody's Investors Service has placed the AAA bond rating currently held by the U.S. on review for a possible downgrade. At the same time, discussions between GOP leaders and President Obama on raising the debt limit continued to go nowhere today, with Republicans still refusing to consider any anything related to revenue increases and Democrats withholding any further cuts in spending in response. Some investors and analysts are worrying that certain members of Congress might prefer to let a U.S. debt default take place rather than face the heat from angry constituents.
In an appearance before Congress today, Federal Reserve Chairman Ben Bernanke indicated that additional monetary easing may be on the horizon, saying that a new stimulus program with additional asset purchases is already being planned. In prepared remarks, the Chairman stated that the growth of the economy is slower than expected, and that if that slow growth continues, "...the Federal Reserve remains prepared to respond should economic developments indicate that an adjustment in the stance of monetary policy would be appropriate." Reacting to the news, the price of gold rose climbed to a record high of $1,584.39 per ounce before ending the day at $1,584.00 per ounce, with both stocks and Treasury yields increasing too.
The federal budget deficit for June came in at $43.1 billion, with the year-to-date budget deficit at $970.5 billion. Experts predict that deficit is set to exceed the $1 trillion mark for the third year in the row. Meanwhile, a recent poll by Reuters shows that 63% of Americans feel the country is headed in the wrong direction, with concern centered on unemployment and the government's efforts to raise the U.S. debt limit.
At 4:15PM (CT) the
APMEX precious metal prices were:
Gold price - $1,584.00 - Up $20.70 on the day
Silver price - $38.28 -- Up $2.59
Platinum price - $1,759.30 -- Up $23.00
Palladium price - $778.00 -- Up $8.60
Posted 07/13/2011 5:39 pm
