Mid-Day Gold & Silver Market Report – 8/17/2011
SAFE HAVEN BUYING KEEPS GOLD STRONG; SILVER “CATCHING UP”
Gold has continued to trade steady today with small gains from early morning prices as consumers look to venture back into stocks and take profits in gold as it nears $1,800. Silver makes gains this afternoon “catching up to gold,” says George Gero, senior vice president at RBC Capital Markets. Gero adds that silver has trailed a little slower behind gold despite its safe haven appeal due to the fact that is so strongly tied to the industrial markets. Good news for platinum and silver, Will Rhind, head of U.S. Operations for ETF Securities, notes that there has been an influx of orders for these metals.
Gold is heading into its busiest season, August through the end of December, and all eyes are on the metal as the prices near $1,800 so far this season. The historical average of gain for the last 11 years during this period has been 11%, which would put prices around $1,989. President of Tower Trading, Anthony Neglia, who trades in both gold and silver, feels the reasons behind gold buying is still strong saying, “the basic principle of what’s driving gold at the moment [and] it's primarily the investor buyers out of Europe, the U.S. and Asia looking…to protect themselves against paper currencies.”
The rise in stock markets could be a result of President Obama’s announcements to create packages that will stimulate growth and create jobs by asking Congress for billions of dollars in fresh spending. Hugo Chavez, President of Venezuela, has taken money from historical safe-haven currencies (Swiss franc and English banks) and putting it into alternate currencies such as Brazil, China and Russia while also moving hundreds of tons of gold into its own central bank vaults.
At 12:00 pm (CT) the APMEX precious metals spot prices were:
- Gold - $1,789.80 – Up $2.80.
- Silver - $40.25 – Up $0.32.
- Platinum - $1,841.50 – Up $23.40.
- Palladium - $776.60 – Up $18.10.