Mid-Day Gold & Silver Market Report – 7/20/2011
MORE PLANS, MORE PROBLEMS, GOLD RISING
Congressional leaders are doing their best to come up with a strong enough compromise that will accommodate the need to increase the debt ceiling, while also balancing the budget. The main component is trying to accommodate two different plans in one fell swoop among a bipartisan Congress. Charles Schumer, a noted Democrat, says, “The fact that Republicans are coming out for revenues is certainly something of a breakthrough, they haven’t done that before…We hope it shows they’re willing to compromise. But of course we are running out of time. We need to assure the world we will not default on our debt.” Some Republicans, like Oklahoma’s Tom Coburn, want to go “all out” to solve the problem while also recognizing there are issues some party members may not be entirely comfortable with in regards to the current “Gang of Six” proposal. Kent Conrad of North Dakota basically says the nation needs to “face up” to the current economic situation. The pressure is building.
EU leaders will be meeting Thursday in an effort to come up with a convincing solution to Greece’s debt crisis or the global economy will pay the price. Jose Manuel Barroso, as well as officials of the 17-nation currency and bankers struggled to decide on a set of measures to persuade markets that Greece can be saved from default and the rest of the euro zone from contagion. “Nobody should be under any illusion; the situation is very serious. It requires a response, otherwise the negative consequences will be felt in all corners of Europe and beyond," Barroso told a news conference. Barroso states that the elements of solution must include measures to ensure sustainability of Greek public finances, private sector involvement in funding for Athens, more flexible use of the euro zone's EFSF bailout fund, repair of the region's banking system and liquidity to keep the economy going.
At 12:01 PM (CT) the APMEX precious metals spot prices were:
- Gold – $1,597.10 – Down $5.00 on the day.
- Silver – $39.59 – Down $0.70.
- Platinum – $1,775.50 – Down $0.80.
- Palladium - $796.10 – Down $4.20.