Morning Gold & Silver Market Report – 7/18/2011
GOLD BREACHES $1,600 AS OPTIMISM IN U.S. AND GREECE SUBSIDES
Gold breached the $1,600/oz. barrier earlier this morning amid fears of debt contagion in the eurozone and unsatisfying U.S. debt ceiling talks. Silver rose above $40/oz. for the first time since the large run in late April. An analyst at Forex.com explained, “Recently, gold has outpaced silver; however, with gold reaching a record … we think that silver may play catch up.” Gold’s appeal as a safe haven and hedge against inflation are shining through in this time of global economic uncertainty.
Later this week, a summit of European Union leaders will be held in order to work on details for the second bailout of Greece. An informal advisor to European Commission President Jose Manuel Barroso said that leaders have waited too long for action. He said, “…I’m not optimistic. We’ve had solutions in the past, but we haven’t grasped them. Now it’s too late for some of those solutions to work anymore; the opportunity has been lost.”
There was no major progress over the weekend on debt ceiling talks. Senate Republican leader Mitch McConnell and Senate Democratic leader Harry Reid did negotiate a plan that will keep Republicans from having to take the vote in favor of the plan. As a Republican, a vote for the plan is political poison, so they are trying to remove any hurdles they can. Obama’s deadline for the debt ceiling being raised is this Friday, July 22.
At 8:07 am (CT) the APMEX precious metals spot prices were:
- Gold - $1,601.30 – Up $10.20 on the day.
- Silver - $40.42 – Up $1.29.
- Platinum - $1,772.90 – Up $17.40.
- Palladium - $795.30 – Up $12.70.