Morning Gold & Silver Market Report – 4/19/2011
GOLD & SILVER MAINTAIN YESTERDAY’S GAINS –Both the stock and precious metals markets are settling after yesterday’s large gains for gold and silver and large losses for the stock market. This all came about on the news that Standard & Poor’s had issued a negative outlook on the US Credit Rating. On one hand, this negative outlook is seen as a wake up call to politicians to do something about our national debt. On another, it is viewed as a political move by an agency lacking credibility, as they contributed to the housing crisis through their Triple AAA ratings on mortgage backed securities, that eventually went into default.
The Commerce Department announced that housing starts rose 7.2% to a seasonally adjusted annual rate of 549,000 units. Although this indicates a bounce back in residential construction, the news is viewed as relatively neutral, as there remains an over supply of homes on the market.
Yesterday, it was being reported that Greece had accepted that they would eventually need to restructure their debt. Today, the European Commission came out and strongly denied this report. Greece’s debt service will soon grow to 160 percent of their national output. This leads many financial analysts to believe that there will be restructuring and there will eventually be “haircuts”.
AT 8AM CT the APMEX precious metal prices were:
- Gold price - $1,495.00 (up $1.00)
- Silver price - $43.25 (up 23 cents)
- Platinum price - $1,783.20 (up $1.40)
- Palladium price - $737.00 (down $3.10)