Mid-Day Gold & Silver Market Report – 6/10/2011
AS QE2 ENDS, THE FLOCK TO CASH PICKS UP
The uncertainty surrounding the end of QE2 and a lack of a firm direction towards a possible QE3 by the Fed, investors are looking to become less risky in their investments. This is causing dips in the market, which is set to continue its weekly losing streak. According to William De Vijder, Chief Investment Officer at BNP Paribas Investment Partners,” …That's fueling taking money off table and an increase in risk aversion. The ending of QE2 means money will be pulled towards government bonds and that will be detrimental for high yields or emerging markets. That's the risk.”
Everyone has an assumption on a number of levels that Christine Lagarde is the front runner for the head of the IMF and her win is a foregone conclusion, before the list of nominees comes out. Remember Donald Trump’s presidential candidacy? Anyone? There is growing concern over just whom may be the ultimate candidate for the IMF head and whether or not, for the first time in its history, that person could be someone from an emerging nation, such as her main competitor Agustin Carstens of Mexico or a European, like Ms. Lagarde.
With the dollar strengthening, the price of gold seems to be dipping. However, according to a number of analysts, persistently low interest rates, the poor U.S. economic performance and euro zone issues all point towards a more favorable long term outlook for gold.
At 12:17 PM (CT) the APMEX precious metals’ prices were:
- Gold price - $1534.30 (down $8.90)
- Silver price - $36.62 (down $0.90)
- Platinum price - $1831.30 (down $14.40)
- Palladium price - $818.00 (down $2.10)