Closing Gold & Silver Market Report – 6/17/2011
STOCKS FINALLY BREAK STREAK, MIDDLE EAST TENSIONS GROW
U.S. stocks ended their six-week losing streak today, ending mildly higher amid mixed-results reports about the economy and potential progress in Europe to prevent a Greek debt default. To add to the speculative state of the U.S. economic recovery, former presidential advisers Laura D’Andrea Tyson (Clinton) and R. Glenn Hubbard (G.W. Bush) debated just how long it could take the U.S. to pull itself out of the hole it’s in. Tyson is on the side that it can take ten years from a recession to fully recover, where Hubbard believes it can happen faster, and that it’s simply a spending problem.
The euro began to recover thanks to the news from earlier today about Germany and France showing unity regarding supporting Greece. Credit rating agency Moody’s Investors Service announced that it may cut Italy’s sovereign debt rating thanks to forthcoming challenges for growth. Oil is down to a four-month low, and part of the reason is due to the bleak outlook of the European debt crisis. Typically, oil and gold have a positive correlation to each other, and a negative correlation to the dollar. This was not a typical day for oil, as the dollar fell, and gold climbed.
Tensions continued to grow in the Middle East. In Syria, 16 protesters were shot dead by security forces. In Libya, a key town was under heavy fire as rebels tried to advance into government-held territory east of Tripoli. In Yemen, President Saleh is set to return to the country within days after being wounded in an attack. Finally, the relationship between the U.S. and Pakistan seems to be continuously deteriorating. Friday, NATO aircraft reportedly attacked a Pakistani military post near the Afghan border. Tensions have been thick between the U.S. and Pakistan since U.S. Navy SEALs killed Osama bin Laden in Pakistan without approval from the Pakistani government.
At 4:00 pm (CT) the APMEX precious metals spot prices were:
- Gold – $1,541.00 (up $10.60 on the day)
- Silver – $35.97 (up $0.32)
- Platinum – $1,758.10 (down $3.60)
- Palladium - $748.00 (down $17.50)