Morning Gold & Silver Market Report – 8/12/2011
GOOD NEWS IN U.S., EUROPE NOT TEMPERING DEMAND FOR SAFE HAVEN
Retail sales for July increased by 0.5%, allowing stock futures to add to gains this morning. Another closely-watched report to be released this morning is the University of Michigan’s August index of consumer sentiment. Expectations are that sentiment will have fallen to 62.0 from 63.7, but most are looking forward to next month’s report, which will take into account the U.S. credit rating downgrade and this week’s volatility in the market.
In Europe, a ban on short-selling has supported a market rally after banks have taken major hits over the past week. This situation was also softened by data released by the European Central Bank that showed that the banks do not have liquidity issues, as previously speculated. The Italian cabinet called a meeting today to approve a deal regarding balancing the budget in the next two years, easing fears of contagion of the European debt crisis. Many reports have surfaced recently that Italy was too big to bailout, so this is an important move.
Gold and silver are relatively flat this morning, as investors continue to seek the safe haven appeal of precious metals. In fact, many “cash-for-gold” companies are having a hard time finding people willing to give up even their old jewelry for cash.
At 8:00 am (CT) the APMEX precious metals spot prices were:
- Gold – $1,749.20 – Down $4.40.
- Silver – $38.56 – Down $0.22.
- Platinum – $1,804.00 – Up $11.60.
- Palladium - $750.50 – Up $14.70.