Morning Gold & Silver Market Report – 8/4/2011
IS WALL STREET SIGNALING A NEW RECESSION?
Stock futures are down this morning, and have remained so after the jobless claims report was released. The report showed a drop in new claims, albeit a small drop, and the four-week moving average fell to its lowest level since April. Gold and silver are both holding on to gains, gold near a record high yet again. Analysts from Commerzbank Commodity Research said in a note, “Gold is still proving its character as a store of value in the current market environment, marked by equity markets tumbling sharply in part and continued high risk aversion.”
Spain had a successful bond auction, though not without issue. The country’s cost of borrowing is rising to levels near unsustainable – around 6%. Some analysts say that if the level reaches 7%, it would force Spain to ask for a bailout, following in the footsteps of Portugal and Ireland.
The editor-in-chief of Marketwatch says that when looking at economic numbers, it appears as though stocks are “pricing in a new recession.” He adds that the next few months could be a “wild ride” in a typically-volatile season.
At 8:02 am (CT) the APMEX precious metals spot prices were:
- Gold - $1,676.80 – Up $11.50.
- Silver - $41.98 – Up $0.17.
- Platinum - $1,755.50 – Down $29.50.
- Palladium - $783.40 – Down $13.80.