Closing Gold & Silver Market Report – 7/01/2011

JULY IS IN LIKE A BEAR FOR GOLD – The precious metals market saw losses across the board today as strong manufacturing data out of the U.S. and a positive sentiment from the EU on Greek debt encouraged investors to move into other investments.  Jim Steel, a metals analyst with HSBC in New York said, “It’s really in line with the overall commodity decline.”  Other commodities, notably oil and grains, have made pronounced declines as well.

Analysts at BNP Paribas have put the movement of gold into perspective.  They note that inflationary pressures lead to safe-haven buying.  Gold had fertile ground to grow in the first and second quarters this year with the euro-zone crisis and a weak dollar.  Now, with much of the economic tension from the euro-zone settling down, the next pressure on gold is likely to come as the August 2nd deadline nears on the U.S. debt ceiling.  As the date draws nearer, there could be a shift in risk as investors move back to the safe-haven of gold.

At 4:15 pm (CT) the APMEX precious metals spot prices were:

• Gold - $1,489.00 - Down $14.80 on the day.
• Silver - $33.95 - Down $0.95.
• Platinum - $1,721.70 - Down $4.40.
• Palladium - $762.00 - Down $0.70.

Be patriotic year round with American Silver Eagles.