Mid-Day Gold & Silver Market Report – 9/8/2011
MORE OF THE SAME IN CONGRESS
In morning trading, stocks have erased some declines and are mostly positive, along with platinum and palladium. Gold and silver have remained relatively stable from the gains experienced this morning, likely buoyed by the uncertainty in the stock market. Investors are awaiting President Obama’s speech to Congress tonight, perhaps explaining the tentative feeling towards the volatile market. As Hank Smith, CIO of Haverford Investments, explains, “The battle in the stock market, and why we’re getting these wild swings, is on the one hand we have this economic data that continues to come in below expectations, so now the second half GDP is going to grow, but not by all that much. On the other side, we have corporate America, which is profitable with terrific balance sheet strength, record amounts of cash, and valuations as cheap as they’ve been in 30 years.”
The super-committee created after the budget battle that drove precious metals and stocks into a frenzy this summer is showing familiar signs of bullheadedness. The panel is made up of six House members and six senators split evenly between both parties, and say that they are eager to compromise. However, members of both parties are saying the focus should be on different things, suggesting “more of the same.”
As mentioned in the Morning Gold & Silver Market Report, Federal Reserve Chairman Ben Bernanke is not likely to announce anything regarding further quantitative easing when he speaks this afternoon. Speaking of Bernanke, he may join the 414,000 who filed for new unemployment benefits if it’s up to Republican Presidential candidates. Former House Speaker Newt Gingrich and once-frontrunner for the Republican nomination Mitt Romney claimed that Bernanke would not serve in their administrations if elected.
At 12:12 pm (CT) the APMEX precious metals spot prices were:
- Gold - $1,859.80 – Up $40.30.
- Silver - $42.56 – Up $0.86.
- Platinum - $1,854.10 – Up $24.40.
- Palladium - $762.90 – Up $10.20.