Mid-Day Gold & Silver Market Report – 8/18/2011
PHILLY FED INDEX DOES NOT LOOK GOOD FOR ECONOMY
Gold has added to gains this morning while silver has fluctuated slightly, but is overall flat since the morning. The stock market, however, is sharply down (as much as 528 points) since the Philly Fed factory index was released this morning. Investors are flocking to safe haven investments such as gold as the volatility of the stock market is at all-time highs.
Gold is well on its way to a settlement record, and a portfolio manager with OptionSellers says that “[t]here’s so much talk about a double dip [recession] … It seems as though gold is the last safety net available.” The record run is continuing thanks to dismal economic reports released today. The jobless claims report was expected to increase by 1,000, and it increased by 9,000. More importantly, perhaps, was the release of the Philly Fed factory index, which was expected to show a positive 0.5 in August. When the index was released, it showed a drop to negative 30.7. The subzero reading indicates contraction in factories in the Philadelphia region.
Fears of a slowing global economy and another recession has also caused the stock market to plummet. Marc Chandler of Brown Brothers Harriman & Co. wrote, “Market sentiment continues to deteriorate amid concerns about the euro-zone banking sector.” The Federal Reserve is taking action on worries that the eurozone debt crisis could spread to the U.S. banking system.
At 12:24 pm (CT) the APMEX precious metals spot prices were:
- Gold - $1,825.00 – Up $29.20.
- Silver - $40.79 – Up $0.33.
- Platinum - $1,842.80 – Up $2.00.
- Palladium - $754.00 – Down $23.90.