Morning Gold & Silver Market Report – 8/23/2011
GLOBAL EQUITIES UP, GOLD FALLS BELOW $1,900
Gold traded higher, well over $1,900 an ounce, overnight, but has since given up those gains thanks to global stocks being up. Silver and platinum have mostly tracked gold overnight, while palladium has pared some of its early morning losses. Citigroup strategists said, regarding raising their forecasts for gold, “Fears about sovereign defaults and currency debasement have left many investors concerned about switching from equities into government bonds, and cash hardly looks an attractive alternative when real rates are negative. Gold has therefore been the main beneficiary of all these concerns.”
The markets are up mainly on speculation that Federal Reserve Chairman Ben Bernanke will signal that he is ready to put forth a third round of quantitative easing (QE) later this week. A meeting of international central bankers is to be held this Friday in Wyoming, and last year’s meeting saw Bernanke signal the coming of QE2.
The situation in Libya is moving along, and NATO support is allowing rebels to approach Muammar Gaddafi’s headquarters in Tripoli this morning. The sentiment regarding this situation is that it’s all but over for Gaddafi, and that the sooner this conflict is over, the oil markets may see some relief.
At 8:00 am (CT) the APMEX precious metals spot prices were:
- Gold - $1,880.70 – Down $13.20.
- Silver - $43.15 – Down $0.29.
- Platinum - $1,893.20 – Down $12.50.
- Palladium - $764.50 – Down $2.60.