Apmex Gold & Silver Market Report -- 7/20/2011

The following is a commentary from APMEX

Morning Gold & Silver Market Report -- 7/20/2011
Ryan Schwimmer, APMEX - Commentaries

OPTIMISM ABOUNDS OVER DEBT CEILING, EUROZONE TALKS

U.S. stock futures are trading higher and gold is down this morning thanks to renewed optimism regarding debt ceiling negotiations. On an unrelated note, the "cut, cap, and balance" plan was passed by the House yesterday, but President Obama has already said he would veto this bill. To the President, the more relevant plan is the "Gang of Six" plan that was drafted yesterday, which would see cuts of $3.7 trillion over the next ten years.

French President Nicolas Sarkozy will meet with German Chancellor Angela Merkel today to discuss the debt crisis in the eurozone. News of the meeting is also sparking optimism as these representatives from the two largest economies in the eurozone are attempting to find common ground before tomorrow's European summit. Greek Prime Minister George Papandreou called tomorrow's summit a "make-or-break moment" for the eurozone.

Optimism is also the word in Libya, as rebels say they have surrounded the eastern oil town of Brega and could be close to capturing it. This would be a major step in their attempts to overthrow Muammar Gaddafi. Fighting continues in Yemen, where the opposition has set up a council to lead efforts to oust President Saleh. This situation is very similar to the one in Syria, where opposition forces formed their own council to oust President Assad.

At 8:00 am (CT) the APMEX precious metals spot prices were:

Gold -- $1,584.00 -- Down $18.10 on the day.
Silver -- $38.51 -- Down $1.78.
Platinum -- $1,765.90 -- Down $10.40.
Palladium - $790.00 -- Down $10.30.

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Mid-Day Gold & Silver Market Report -- 7/20/2011
Timothy Oakes, APMEX - Commentaries

MORE PLANS, MORE PROBLEMS, GOLD RISING

Congressional leaders are doing their best to come up with a strong enough compromise that will accommodate the need to increase the debt ceiling, while also balancing the budget. The main component is trying to accommodate two different plans in one fell swoop among a bipartisan Congress. Charles Schumer, a noted Democrat, says, "The fact that Republicans are coming out for revenues is certainly something of a breakthrough, they haven't done that before...We hope it shows they're willing to compromise. But of course we are running out of time. We need to assure the world we will not default on our debt." Some Republicans, like Oklahoma's Tom Coburn, want to go "all out" to solve the problem while also recognizing there are issues some party members may not be entirely comfortable with in regards to the current "Gang of Six" proposal. Kent Conrad of North Dakota basically says the nation needs to "face up" to the current economic situation. The pressure is building.

EU leaders will be meeting Thursday in an effort to come up with a convincing solution to Greece's debt crisis or the global economy will pay the price. Jose Manuel Barroso, as well as officials of the 17-nation currency and bankers struggled to decide on a set of measures to persuade markets that Greece can be saved from default and the rest of the euro zone from contagion. "Nobody should be under any illusion; the situation is very serious. It requires a response, otherwise the negative consequences will be felt in all corners of Europe and beyond," Barroso told a news conference. Barroso states that the elements of solution must include measures to ensure sustainability of Greek public finances, private sector involvement in funding for Athens, more flexible use of the euro zone's EFSF bailout fund, repair of the region's banking system and liquidity to keep the economy going.

At 12:01 PM (CT) the APMEX precious metals spot prices were:

Gold -- $1,597.10 -- Down $5.00 on the day.
Silver -- $39.59 -- Down $0.70.
Platinum -- $1,775.50 -- Down $0.80.
Palladium - $796.10 -- Down $4.20.

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Closing Gold & Silver Market Report -- 7/20/2011
Stephanie Chandler, APMEX - Commentaries


Despite gold trading lower this morning, it has rallied to stay above the $1,600 mark. Precious metals took a little dip today on news of Obama pushing for a quicker deal on the debt ceiling however the seriousness of the situation combined with a struggling economy and rumors of QE3 people stayed close to the safe-haven investments. The U.S. stocks ended slightly lower this evening with the Dow down 16 points.

Although there has been a lot of talk about gold, especially since gold has broken records as of late, but silver is not to be forgotten as experts are telling it. The ratio of gold-to-silver has been a watched by many to get an idea of how well silver is trading at the time, and experts are saying that although it has some catching up to do, it has great potential.

Is the U.S. now making plans for possible default?

At 4:00 PM (CT) the APMEX precious metals spot prices were:

Gold -- $1,602.30-- Up $0.20 on the day.
Silver -- $40.19 -- Down $0.10.
Platinum -- $1,778.60 -- Up $2.30.
Palladium - $798.00 -- Down $2.40.