Mid-Day Gold & Silver Market Report – 8/16/2011
INDUSTRIAL PRODUCTION UP, SOOTHING FEARS OF RECESSION … FOR NOW
Since the stock market opened this morning, stocks have declined amid the news of Germany’s sluggish Gross Domestic Product growth. Gold and silver have risen since the morning, adding to gains as investors look for a safe haven away from the volatile market. A Federal Reserve report showed that there was a 0.9% gain in industrial production in July, which supported the prices of platinum and palladium.
The report said that industrial production was up thanks to the auto industry, but the news wasn’t enough to outweigh the negative effects on the market of Germany’s GDP growth (or, more specifically, the connotations it has regarding a slowing global economy). It has seemed to soothe fears of another recession, for the time being. Ryan Sweet of Moody’s Analytics said, “I don’t think we are headed for a second recession. When you take the industrial production report together with July retail sales, it shows consumer spending started this quarter off to a decent start.”
The meeting between French President Nicolas Sarkozy and German Chancellor Angela Merkel this morning brought about an agreement that the size of the European Financial Stability Fund did not need to be increased. The leaders of the two largest economies within the eurozone also agreed that a tax on financial transactions was necessary. They also discussed the need for stricter enforcement of economic policy within the eurozone.
At 12:00 pm (CT) the APMEX precious metals spot prices were:
- Gold - $1,786.10 – Up $26.10.
- Silver - $40.04 – Up $0.63.
- Platinum - $1,818.00 - $20.80.
- Palladium - $758.90 – Up $10.60.