Morning Gold & Silver Market Report – 2/22/2011
At 8AM (CT) the APMEX precious metal prices were:
- Gold price - $1,403.20
- Silver price - $33.34
- Platinum price - $1,824.00
- Palladium price - $838.40
COMMENTARY: Gold and silver prices are once again on the move as they rebound from overnight profit taking. Gold spot price is up $14.10 and silver price is up 96 cents. These moves are a result of the safe haven appeal of gold and silver. Platinum and palladium on the other hand are diving sharply in conjunction with the stock futures. These two metals are tied to industry and production, so as the economic future dims slightly, their prices will drop. Platinum spot price is off $19.30 and palladium price is down $21.30.
There are several key drivers ramping up fears in the equity markets. First, it appears Libya’s Muammar Gaddafi is willing to use guns, tanks, helicopters and warplanes against his own people in order to put down a revolt. It is reported that people are being shot just for walking the street. An already bloody situation is about to get bloodier.
Moody’s Investors Service issued a warning to Japan that they may cut their sovereign rating if they fail to implement a comprehensive tax reform policy. Today’s warning follows a downgrade by Standard & Poor’s one month ago, which was its first cut in nine years. Together, they are beginning to expose a country that could be in dire financial condition.
On the home front, US single-family home prices fell for the sixth month in a row. Although numbers met expectations, they did not take away fears of a double dip recession for home prices. As the government's home buying subsidies expire, it is likely home prices will only continue to fall.