Morning Gold & Silver Market Report – 6/2/2011
JOBLESS CLAIMS DOWN, DOLLAR WELCOMES THEM
Jobless claims fell this morning, though not as much as anticipated. The four-week moving average fell by 14,000 to a one-month low. The U.S. dollar started the day down, and has remained so after the jobless claims report was released. Stock futures are up slightly amid the news. Gold was higher in overnight trading amid domestic financial worries, but is currently relatively flat. A financial analyst from Marketwatch explains that, at the moment, gold is the choice that makes the most sense for investors. He goes on to say that “polls show that while most Americans see the need for the federal budget deficit to be cut, the majority of citizens are not prepared for cuts in Medicare and other entitlements that are necessary to materially reduce it. …And then there is the historical side of it: No fiat currency has ever survived.” J.P. Morgan was quoted as saying, “Gold and silver are money. Everything else is credit.”
Greek officials were not happy with Moody’s cutting their credit rating further into junk territory, and word is spreading that Europeans are crying foul about two of the main credit agencies being based in the U.S., and biased. The sentiment is shared by China, who is trying to get its own credit agency into the group of top agencies. There are also growing rumors that the European Commission is looking to get a centralized credit agency off the ground. The President of the European Central Bank has proposed the creation of a Eurozone Finance Ministry, as well as a veto for EU powers over spending and major policy decision.
Fighting in Yemen intensified overnight, and dozens more have been killed. This civil war looks to be far from over, with over 135 people killed in the last ten days. Syria is still embattled in their own geopolitical issues, not to mention the ones in Libya as well.
At 8:04 am (CT) the APMEX precious metals spot prices were:
- Gold – $1,541.50 (down $2.10 on the day)
- Silver – $37.22 (down $0.57)
- Platinum – $1,826.50 (up $1.60)
- Palladium - $778.50 (down $2.60)