Morning Gold & Silver Market Report – 8/31/2011
PRIVATE JOBS REPORT DISAPPOINTS; INVESTORS OPTIMISTIC
In overnight trading, global stocks were largely higher (along with platinum and palladium), while gold and silver were mainly flat. U.S. stock futures are still up after the slightly disappointing ADP Private-Sector Jobs report, which showed a gain of 91,000 jobs this month. Investors are clinging to optimism, however, and one group of analysts explained it by saying, “With the decline in the stock market, debate in Washington, and [the] downgrade to the U.S. credit rating, it very much could have been worse.” On tap for economic data today are releases of the Chicago purchasing managers index for August and factory orders for July.
In an effort to stimulate the troubled economy, specifically the housing market, the Obama administration is reported to be unveiling a mortgage relief program next week. The administration’s last initiative, the Home Affordable Refinance Program, fell vastly below expectations. The program was targeted to save up to 5 million homes from foreclosure, but has only prevented slightly over 800,000 to this point.
China is looking to increase its holdings on gold and other commodities yet again. An adviser to the People’s Bank of China told the China Business News that the emerging-market country should advance its position. The adviser, Xia Bin, said, “China should realize that gold is an important strategic reserve, and should increase its holdings over the long term, buying on price dips. In the past we have not established this as an investment principle, but now we must.”
At 8:08 am (CT) the APMEX precious metals spot prices were:
- Gold - $1,831,80 – no change.
- Silver - $41,84 – up $0.31.
- Platinum - $1,851.10 – down $3.00.
- Palladium - $785.40 – up $5.70.