Mid-Day Gold & Silver Market Report – 8/11/2011
STOCKS ARE UP – GOLD TAKES A STEP BACK
Gold and silver are trading down today while the stock market is staging a small recovery. Treasury prices are falling, with yields rising from near-record lows while traders look to stocks for riskier assets after the rally. Oil is also up today after the news of the jobless claims declining.
Monday marks the 40th anniversary of Nixon’s move to abandon the gold standard, when he called it only a temporary move. An article in Reuters today gives a brief history on the move while going on to quote experts’ opinions on going back to the gold standard. James Turk, founder of Goldmoney, notes, “Gold has been rising against all national currencies, and that’s significant…When there are problems with a national currency…people begin to worry about the value of their money, whether they’re going to lose purchasing power because of inflation or other problems. As a consequence, they look for safe havens.”
With concerns of troubling markets, the average mortgage rate on a 30-year fixed-rate mortgage has declined to 4.23%, which is the lowest level since November.
At 12:15 AM (CT) the APMEX precious metal prices were:
- Gold price - $1,763.30 – down $23.00
- Silver price - $38.93 – down 51 cents
- Platinum price - $1,792.00 –up $20.30
- Palladium price - $735.10 – up $6.40