Morning Gold & Silver Market Report – 2/11/2011
At 8AM (CT) the APMEX precious metal prices were:
- Gold price - $1,365.30
- Silver price - $30.13
- Platinum price - $1,833.40
- Palladium price - $824.20
COMMENTARY: Precious metal prices were lower in early morning trading, but they have rebounded to where Gold spot price is up $2.30 – Silver price is down 3 cents – Platinum spot price is up $2.60 – Palladium price is up $1.30.
All eyes remain on Egypt. The markets have not reacted to Mubarak’s refusal to step down.Most analysts interpret this lack of reaction as the markets forecasting a positive outcome, but the truth is that no one knows. Pimco’s Mohamed El-Erian told CNBC we should be very concerned about what is happening with the US dollar. In times like these, there is usually a flight to US dollars and Treasuries because they are considered a safe haven. El-Erian states that 19 days ago he would have predicted that the dollar would go up, but it has actually weakened.This is a warning shot that the US should pay attention to. Simply said, the US Dollar may be losing some credibility on the world markets .
Home ownership could become more expensive as the Obama administration has declared the Fannie and Freddie Model “dead”. Timothy Geithner expressed that it was time for private capital to step in and assume the role of backing mortgage finance. It is expected that this will increase the mortgage costs. Currently, 85% of new mortgages are backed by Fannie or Freddie.