The following is a commentary from APMEXAPMEX Morning Gold & Silver Market Report -- 8/3/2011(Ryan Schwimmer),
APMEX - Commentaries
TWO RATINGS AGENCIES KEEP U.S. AT AAA RATING WITH WARNINGS
Credit ratings agencies Moody's and Fitch have said that the U.S. sovereign debt rating will remain unchanged, but both companies said that a downgrade could still come in the future. Moody's placed the U.S. rating on a negative outlook, and gave warnings as to what would cause a downgrade. One of the potential reasons for downgrade would be a "weakening in fiscal discipline in the coming year," which is similar to Fitch's warning of a downgrade if "fundamental weakness" in the economy is not corrected.
In a bit of ‘good news, bad news' for the economy, the ADP private-sector jobs report was released this morning and showed an increase of 114,000 in July. The better-than-expected report was tempered by news that June's gain was revised down to 145,000. This pushed stock futures up, but has had little impact on gold and silver. Gold hit a record high over $1,675 as the economic woes in the U.S. and Europe spurred safe-haven demand for the metal.
At 8:15 am (CT) the
APMEX precious metals spot prices were:
Gold - $1,669.40 -- Up $25.90.
Silver - $41.20 -- Up $1.05.
Platinum - $1,787.40 -- Down $6.10.
Palladium - $811.80 -- Down $17.10.
Mid-Day Gold & Silver Market Report -- 8/3/2011(Timothy Oakes),
APMEX - Commentaries
SURE A DEBT DEAL IS DONE, BUT...
The service sector data, released earlier today put the fear of global recession on the table. World stock markets are taking tremendous hits. The disappointing data is not only U.S.-based, as it also includes Asia and Europe. According to Tom Porcelli, a U.S. Economist at RBC Capital Markets in New York, "Like (with) manufacturing, the trend is undeniable. We have been slowing now since the beginning of the year...This will not quell the chatter in the market that we may be moving toward a recession."
The European Union is feeling quite a bit of upheaval as Italy and Spain are having issues with bond yields. This indicates that concerns are growing that the EU may not be able to solve its own debt crisis, thus fueling the global recession fears. The Finnish Prime Minister, Jyrki Katainen, in a public broadcast said, "The whole of Europe is in a very dangerous situation." France's Societe Generale, a major French financial institution, may miss its profit target due to its exposure to Italian debt. The Swiss have also cut its interest rate target as well because its Franc is being deemed overvalued. The Swiss Franc is viewed as a global safe haven currency (much like gold) amid turbulent market times.
At 12:06 pm (CT) the
APMEX precious metals spot prices were:
Gold - $1,668.90 -- Up $25.40.
Silver - $41.90 -- Up $1.75.
Platinum - $1,783.70 -- Down $9.80.
Palladium - $799.30 -- Down $29.60.
Closing Gold & Silver Market Report -- 8/3/2011
(Craig C. Calvin),
APMEX - Commentaries
U.S. CREDIT RATING DOWNGRADES STILL POSSIBLE; GOLD CONTINUES RECORD TRADINGYesterday's successful passage in Washington of a measure to increase the federal debt limit hasn't eliminated fears that the U.S. could see a downgrade of its coveted AAA credit rating. Although Moody's Investors Service has said that they won't be lowering their AAA bond rating for the U.S. at this time, they did warn that a downgrade could occur in the future if lawmakers do not come up with ways to reduce the government debt, and the economy falters as a result. Fitch Ratings also kept their credit rating for the U.S. at AAA, while echoing Moody's sentiments. Standard & Poor's has yet to announce their decision on a ratings downgrade, which has resulted in a great deal of anxiety and speculation among investors.
Gold once again hit a record today, trading near $1,675 per ounce. With analysts indicating that the disappointing service sector data released today will likely motivate the Federal Reserve towards keeping balance sheets high and interest rates low, investors continue to look to gold as part of their portfolio. Leo Larkin, a metals equity analyst with Standard & Poor's, stated, "It's very hard to find an asset that investors are comfortable with for any length of time. There is an expectation that the government is trying to inflate its way out of the problem, and gold is functioning as the ultimate safe haven and currency."
At 4:15 pm (CT), the
APMEX precious metals spot prices were:
· Gold - $ 1,662.50 - Up $19.00
· Silver - $41.80 - Up $1.65
· Platinum - $1,784.80 - Down $8.70
· Palladium - $798.50 - Down $30.40
Posted 08/03/2011 10:31 am
