Morning Gold & Silver Market Report – 8/22/2011
Gold Prices Heading Towards the Largest Annual Gain in 32 Years - Gold prices may climb more in 2011 than any year in the past three decades. It is not only investors flocking to safety, but also central banks around the globe seeking protection from a struggling global economy and sovereign debt crisis in the U.S. and Europe. According to a Bloomberg survey of 13 traders and analysts meeting in South India on August 20th, we could see $2000 an oz gold by the end of the year.
It appears that the 42 year reign of Muammar Gaddafi is coming to an end. Rebel forces have swept into Tripoli and are meeting only limited resistance. Two of Gaddafi’s sons have been captured, but there is no sign of the President at this time. There is the hope that if Gaddafi is finally toppled, oil supplies out of Libya will begin flowing again and pressure oil prices lower.
U.S. stock futures look to be gaining momentum and are poised for a triple digit increase at the opening bell. Investors are hopeful that the brutal sell-off last week will reverse. They also look ahead to Friday’s speech from Fed Chairman, Ben Bernanke, with expectations that the Fed will do something to curb this economic slide. Gold prices had approached $1900 in the December futures markets, but are pulling back from record highs established in early morning trading. Silver, platinum and palladium are all trading up as well.
As of 8AM (CT) the APMEX precious metal prices were:
- Gold price - $1,867.30 – up $13.10
- Silver price - $42.98 – up 44 cents
- Platinum price - $1,889.10 – up $14.20
- Palladium price - $758.50 – up $7.70