Apmex Gold & Silver Market Report -- 8/22/2011

The following is a commentary from APMEX

APMEX Morning Gold & Silver Market Report -- 8/22/2011
(Peter LaTona), APMEX - Commentaries

Gold Prices Heading Towards the Largest Annual Gain in 32 Years - Gold prices may climb more in 2011 than any year in the past three decades. It is not only investors flocking to safety, but also central banks around the globe seeking protection from a struggling global economy and sovereign debt crisis in the U.S. and Europe. According to a Bloomberg survey of 13 traders and analysts meeting in South India on August 20th, we could see $2000 an oz gold by the end of the year.

It appears that the 42 year reign of Muammar Gaddafi is coming to an end. Rebel forces have swept into Tripoli and are meeting only limited resistance. Two of Gaddafi's sons have been captured, but there is no sign of the President at this time. There is the hope that if Gaddafi is finally toppled, oil supplies out of Libya will begin flowing again and pressure oil prices lower.

U.S. stock futures look to be gaining momentum and are poised for a triple digit increase at the opening bell. Investors are hopeful that the brutal sell-off last week will reverse. They also look ahead to Friday's speech from Fed Chairman, Ben Bernanke, with expectations that the Fed will do something to curb this economic slide. Gold prices had approached $1900 in the December futures markets, but are pulling back from record highs established in early morning trading. Silver, platinum and palladium are all trading up as well.

As of 8AM (CT) the APMEX precious metal prices were:

Gold price - $1,867.30 -- up $13.10
Silver price - $42.98 -- up 44 cents
Platinum price - $1,889.10 -- up $14.20
Palladium price - $758.50 -- up $7.70

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Mid-Day Gold & Silver Market Report -- 8/22/2011
(Peter LaTona), APMEX - Commentaries

Gold Prices Continue to Climb Towards $1900

All precious metals prices (gold, silver, platinum and palladium) have continued to show strong gains in morning trading. The U.S. stock market has been upbeat as well, although it came off its highs for the day when more weakness was predicted for European banks. We see a mixed message in today's market, as some investors step back into risk, while others back strongly away.

In Libya, there is still no sign of Muammar Gaddafi, but the end of his reign will also mark the end of what has been termed the "Arab Spring". This long and bloody chapter of populist revolutions may conclude for the time being, but there are still more questions than answers as to the "new governments" will look like. The only certainty seems to be that this will be a long transition to stability and possibly democracy.

Consumer confidence has hit its lowest point since May 1980, according to a preliminary report from Thomson Reuters/University of Michigan. Current projections indicate it will only get worse. It is not just the low and middle-income respondents falling, the high-income families are losing confidence as well.

At 12:15 PM (CT) the APMEX precious metal prices were:

Gold price -$1,891.60 -- up $37.40
Silver price -$43.42 -- up 88 cents
Platinum price - $1,902.50 -- up $27.60
Palladium price - $764.00 -- up $13.20

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Closing Gold & Silver Market Report -- 8/22/2011
(Robert Davis), APMEX - Commentaries

GOLD TOPS $1900, PUSHED BY SAFE HAVEN BUYING -

Gold closed at a new record high today, surging in the afternoon after a fairly volatile day. Platinum is also at a new record high, just slightly higher than its yellow cousin.

There are growing rumblings of a third round of quantitative easing by the Federal Reserve. Analysts are citing Ben Bernanke's comments about the recovery being "considerably slower", and the upcoming meeting of the Fed at Jackson Hole, WY. Jackson Hole was the setting for the announcement of the second round of quantitative easing last year, and the market seems to be pricing in a similar announcement this week. "The market's sending a signal to Bernanke saying, 'We want QE3 and we want it this week, or we're going to hammer you and the market will get absolutely killed,' " said Keith Springer, President of Springer Financial Advisory in Sacramento, Calif.

Oil prices declined as Libyan rebels entered Libya's capital city of Tripoli today, although it may take years before the country can export crude at the same rate it did before the revolution. Lower oil prices can help spur economic activity, as consumers become less concerned with high prices at the pump, and it becomes cheaper for businesses to move goods to the market.

At 4:15 PM (CT) the APMEX precious metal prices were:

Gold price -$1,902.40 -- up $48.20
Silver price -$43.85 -- up $1.31
Platinum price - $1,909.80 -- up $34.90
Palladium price - $765.50 -- up $14.70