Morning Gold & Silver Market Report – 9/2/2011
August Jobs Report is a Big Fat Goose Egg
Gold and silver prices have risen overnight, in anticipation of another lackluster jobs report. The U.S. stock market futures are falling on the same expectations. The report just came out at 7:30 AM (CT) and once again the number falls below expectations. Most projections were for between 68,000 -71,000 new jobs created, but there were no gains and unemployment holds at 9.1%. Gold and silver prices moved further up on the news.
The European Union (EU) bailout of Greece has only become more contentious. Once thought to be a done-deal, yesterday, talks broke down between international inspectors and Greek officials on whether Greece has met the requirements to receive even more bailout money. Their disagreements are centered around why and by how much the Greek deficit programs have fallen behind. This break down in discussions had not been planned and serves to further rattle markets both in the U.S. and abroad.
Switzerland has been very concerned about the rapidly rising value of the Swiss franc. The Swiss franc is gaining popularity as other world currencies losing theirs. One of these reasons that the Swiss franc is gaining safe haven appeal is that as a percentage of their GDP, the Swiss central bank owns more gold than any other country in the world. The Swiss central bank may very well begin buying Euros to curb the rise in the Swiss franc. This measure is one that they hoped to avoid, but they may need to intervene. This week, the Swiss franc is heading for its largest weekly gain ever against the Euro.
A federal U.S. agency is preparing to sue more than a dozen big banks for their role in the mortgage meltdown. The charges will revolve around accusations that these big banks misrepresented the quality of the mortgage-backed securities. The Federal Housing Finance Agency is expected to seek billions in compensation.
At 8AM (CT) the APMEX precious metal prices were:
- Gold price - $1,882.40 – up $51.30
- Silver price - $43.15 - up $1.35
- Platinum price - $1,880.60 – up $26.70
- Palladium price - $786.30 – down $4.20