Mid-Day Gold & Silver Market Report – 8/3/2011
SURE A DEBT DEAL IS DONE, BUT…
The service sector data, released earlier today put the fear of global recession on the table. World stock markets are taking tremendous hits. The disappointing data is not only U.S.-based, as it also includes Asia and Europe. According to Tom Porcelli, a U.S. Economist at RBC Capital Markets in New York, "Like (with) manufacturing, the trend is undeniable. We have been slowing now since the beginning of the year…This will not quell the chatter in the market that we may be moving toward a recession."
The European Union is feeling quite a bit of upheaval as Italy and Spain are having issues with bond yields. This indicates that concerns are growing that the EU may not be able to solve its own debt crisis, thus fueling the global recession fears. The Finnish Prime Minister, Jyrki Katainen, in a public broadcast said, "The whole of Europe is in a very dangerous situation." France’s Societe Generale, a major French financial institution, may miss its profit target due to its exposure to Italian debt. The Swiss have also cut its interest rate target as well because its Franc is being deemed overvalued. The Swiss Franc is viewed as a global safe haven currency (much like gold) amid turbulent market times.
At 12:06 pm (CT) the APMEX precious metals spot prices were:
- Gold - $1,668.90 – Up $25.40.
- Silver - $41.90 – Up $1.75.
- Platinum - $1,783.70 – Down $9.80.
- Palladium - $799.30 – Down $29.60.