Mid-Day Gold & Silver Market Report – 8/9/2011
FED MAY HAVE A LOT TO SAY TODAY
The stock market is rebounding on the hope the Federal Reserve will come out with measures to help buoy the current economic condition facing the United States. The meeting is set for later this afternoon (2:15 pm ET) and speculation is mounting that Chairman Ben Bernanke may announce steps to ramp up growth. According to Wayne Lin, a money manager at Legg Mason Inc. of Baltimore, “The market has convinced itself that Bernanke is going to, or has to, say something to calm the markets…It’s a matter of confidence. After yesterday’s drop in stocks, investors are hoping that the administration has gotten the message that they need to get their act together. The other part of it is that a lot of the measures we’re looking at are saying that relative to bonds, stocks are very cheap.”
For the first time since fresh financial crisis worries surfaced, Chinese Premier Wen Jiabo came out urging global nations to come together to stabilize current market conditions. In a radio address to China, he said, "We urged relevant countries to take responsible monetary and fiscal policies to cut fiscal deficits and properly manage the debt crisis, to ensure a stable performance of global markets and maintain investor confidence…The global community should improve the communication and coordination of their macroeconomic policies to realize sustainable, stable and balanced growth in the world economy.”
At 12:00 pm (CT) the APMEX precious metals spot prices were:
- Gold - $1,745.40 – Up $30.20.
- Silver - $38.07 – Down $1.42.
- Platinum - $1,755.80 – Up $32.20.
- Palladium - $736.60 – Up $6.20.