Closing Gold & Silver Market Report – 7/19/2011
GANG OF SIX AGREES TO CUT DEFICIT
Gold dropped below $1,600 this afternoon as investors were more willing to take on risk in their investments. The commodity rallied in Asian trades, extending its recent upturn but flipped back later on. The euro gained with the help of some upbeat comments from European Central Bank President Jean Claude Trichet about the near-term economic outlook for the region. The single currency had recently plummeted to four-and-a-half month lows but has rebounded since, as the critical support levels against the U.S. dollar managed to hold on.
A major deficit plan was agreed upon by the bipartisan “Gang of Six” in the Senate. This deal would reduce federal deficits and is seen as a major step forward in debt ceiling negotiations. President Obama has publicly backed the plan. House Republicans are voting this week in favor of a campaign to reinforce their budget views and eliminate the need for compromise. The slogan for this campaign is “cut, cap and balance.” The bill Republicans are promoting this week would condition any increase in the debt limit on immediate spending cuts, caps on future outlays and congressional passage of a balanced-budget amendment to the Constitution. Obama has specifically said that he will veto this bill in the event it passes.
At 4:00 pm (CT) the APMEX precious metals spot prices were:
- Gold – $1,590.00 – Down $13.40 on the day.
- Silver – $39.10 – Down $1.31.
- Platinum – $1,771.20 – Down $4.20.
- Palladium - $791.30 – Down $5.40.