The following is a commentary from APMEXAPMEX Morning Gold & Silver Market Report -- 7/19/2011Ryan Schwimmer,
APMEX - Commentaries
GOLD FLAT AS DEBT CEILING, EUROZONE ISSUES REMAINThe doors to compromise
finally seem to be opening in debt ceiling negotiations. More details have arisen about behind-the-scenes deals that are in the works. The game of politics is still very much in play, but at least one deal is looking to give President Obama the power to raise the debt ceiling himself if the two sides cannot come to an agreement. In allowing that, Republicans can avoid the blame of failing to raise the debt ceiling while never actually voting for it. Obama's imposed deadline for a deal to raise the debt ceiling is just three days away, and the potential day of default is a mere two weeks away.
Gold is fairly flat today as the euro rises. Investors seem to be showing more risk appetite after the single currency dipped to record lows against the Swiss franc (which, like gold, is often seen as a safe haven store of value) yesterday. An economic sentiment survey in Germany fell, showing that the ongoing debt problems in the eurozone are having an adverse effect even in its strongest economy.
Strong demand for gold in India has been supporting prices and has gone largely unnoticed. The Indian people, like the Chinese, are seeing gold as a way to protect their wealth in times of high inflation. The World Gold Council recently said that 58% of first-quarter demand for physical gold was from these two countries. Over the past thirty years, gold prices have typically eased in the summer amid quiet trading. Since the beginning of June, however, gold is up 4.5%.
At 8:00 am (CT) the
APMEX precious metals spot prices were:
Gold -- $1,603.70 -- Up $0.30 on the day.
Silver -- $40.41 -- Flat.
Platinum -- $1,776.50 -- Up $1.10.
Palladium - $795.00 -- Down $1.60.
Mid-Day Gold & Silver Market Report -- 7/19/2011Stephanie Chandler,
APMEX - Commentaries
GOLD STAYS ABOVE $1,600 AS U.S. STOCKS RISEStocks in the U.S. have risen today based on both positive earnings results from a number of companies and an unexpected six month high in housing-market data. However, the market news wasn't entirely sunny as Goldman Sachs Group Inc's earnings were far lower than expected and Bank of America posted a loss of $8.8 billion, which is its largest quarterly loss ever. After a weeklong rally of over 4.5%, gold is trading with only minor losses (though still above $1,600) as investors readjust their portfolios and sell-off their gains.
There's a vote scheduled today in the House of Representatives on a Republican measure that would allow the debt limit to be increased only if significant spending cuts take place prior to the increase. The measure would also amend the U.S. Constitution to require the government to have a balanced federal budget moving forward into the future. However, even if the measure passes the Republican-led Congress, it is not likely to make its way through the Democratically-controlled Senate, with President Obama threatening a veto even if it did.
German Chancellor Angela Merkel is warning that the upcoming summit between European Union leaders on July 21 won't result in a quick fix for the fiscal crisis currently plaguing Europe, saying "It's entirely about creating a controlled, composed process of gradual steps and measures." Members of the EU are struggling with other member countries and with officials from the European Central Bank to come to a consensus on how to stop the debt problems currently affecting Greece from spreading to other European nations.
At 12:00 am (CT) the
APMEX precious metals spot prices were:
Gold -- $1,602.50 -- Down $0.90 on the day.
Silver -- $40.32 -- Down $0.08.
Platinum -- $1,777.00 -- Up $1.60.
Palladium - $799.50 -- Down $2.90.
Closing Gold & Silver Market Report -- 7/19/2011Ryan Schwimmer,
APMEX - Commentaries
GANG OF SIX AGREES TO CUT DEFICITGold dropped below $1,600 this afternoon as investors were more willing to take on risk in their investments. The commodity rallied in Asian trades, extending its recent upturn but flipped back later on. The euro gained with the help of some upbeat comments from European Central Bank President Jean Claude Trichet about the near-term economic outlook for the region. The single currency had recently plummeted to four-and-a-half month lows but has rebounded since, as the critical support levels against the U.S. dollar managed to hold on.
A major deficit plan was agreed upon by the bipartisan "Gang of Six" in the Senate. This deal would reduce federal deficits and is seen as a major step forward in debt ceiling negotiations. President Obama has publicly backed the plan. House Republicans are voting this week in favor of a campaign to reinforce their budget views and eliminate the need for compromise. The slogan for this campaign is "cut, cap and balance." The bill Republicans are promoting this week would condition any increase in the debt limit on immediate spending cuts, caps on future outlays and congressional passage of a balanced-budget amendment to the Constitution. Obama has specifically said that he will veto this bill in the event it passes.
At 4:00 pm (CT) the
APMEX precious metals spot prices were:
Gold -- $1,590.00 -- Down $13.40 on the day.
Silver -- $39.10 -- Down $1.31.
Platinum -- $1,771.20 -- Down $4.20.
Palladium - $791.30 -- Down $5.40.
Posted 07/20/2011 5:09 pm
