Closing Gold & Silver Market Report – 08/02/2011

DEBT LIMIT AGREEMENT PASSES; STOCKS FALL WHILE GOLD RISES

After a prolonged fight between Republicans and Democrats, the long-sought measure needed to increase the federal debt limit was signed by President Obama today, after successfully passing in both the House and the Senate. The measure increases the U.S. debt limit until 2013, requires $2.4 trillion in spending cuts over the next decade, and establishes a bi-partisan committee that will work towards future reductions in the nation’s deficit. In a statement given at the White House, the President stressed that the measure’s passage is only the beginning of an ongoing process that must include more spending cuts and an increase in the government’s revenue, stating, “We can’t balance the budget on the backs of the very people who have borne the brunt of this recession.”

In spite of the passage of the debt limit measure, investor concerns did not appear to ease today, as stocks in the U.S. fell dramatically. Many analysts are less than impressed with the deal that was finally reached, with Bill Gross, co-CIO of PIMCO (and operator of the largest bond fund in the world) stating in his newsletter, “Nothing in the congressional compromise reached over the weekend makes a significant dent in our $1.5 trillion deficit.” PIMCO’s other co-CIO, Mohamed El-Erian, indicated in an interview that the debt agreement may actually affect this country’s economy for the worse, while saying that he believes there is still a “high chance” that a credit downgrade for the U.S. will take place. However, at the same time that U.S. stocks dived, gold was seen trading as high as $1,647.80 per ounce today, with gold futures ending at another record of $1,644.50 for December delivery, which is a 1.4% increase.

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

· Gold - $1661.50 - Up $40.80

· Silver - $40.92 - Up $1.56

· Platinum - $1,799.20 - Up $4.60

· Palladium - $829.60 - Down $1.90

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Disclaimer:

APMEX’s ‘News and Commentaries’ provide our readers with a review of spot price activity and some of the factors that may be affecting the market for precious metals, three times during the trading day. While the information is obtained from sources we believe to be reliable, we do not guarantee its accuracy or its completeness and we encourage you to conduct your own investigation prior to making any decision based on the information. The "News and Commentaries" are not intended as a comprehensive discussion and there may be other factors that may be affecting the financial marketplace. These "News and Commentaries" are provided for informational purposes only and do not constitute a recommendation by APMEX to hold, to purchase or to sell any precious metal product. All orders, all purchases and all sales, if any, are subject to the terms of the User Agreement and other applicable policies.

US Dollar Prices are in USD

Precious Metal Prices
4/16/2014 6:15:36 PM EST

Metal Bid Ask Change
Gold $1,302.50 $1,304.50 ($1.00)
Silver $19.61 $19.71 $0.03
Platinum $1,426.50 $1,436.50 ($1.30)
Palladium $800.00 $805.00 $1.70
4/16/2014 6:15:36 PM EST

Click here for Historical Charts*All Charts are in USD


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