Morning Gold & Silver Market Report – 9/13/2011
GLOBAL LEADERS WORRY OF GREEK DEFAULT
Since the Closing Gold & Silver Market Report yesterday afternoon, precious metals’ prices have climbed. The investor sell-off has abated and appeal for gold is again on the rise thanks in large part to a potential Greek debt default and the European banking crisis. "There is a slow-motion train wreck going on in Europe at the moment, which is going to be relatively supportive of gold," said Nick Trevethan, Senior Commodities Strategist at ANZ. "All the factors that have been supporting gold for the past few months are still there. Nothing has changed."
The U.S. has concerns that Europe is not able to handle its debt crisis. German Chancellor Angela Merkel has come out to her own coalition and asked to watch what they say when referring to the markets to avoid creating turmoil. In a radio interview her response to whether a Greek default would sink the euro, she said, "We are using all the tools we have to prevent this. We need to avoid all disorderly processes with regards to the euro." President Obama voiced his concerns on the subject as well, saying, "It is difficult to coordinate and agree a common path when you have so many countries with different policies and economic situations…In the end the big countries in Europe, the leaders in Europe must meet and take a decision on how to coordinate monetary integration with more effective coordinated fiscal policy.” U.S. Treasury Secretary Timothy Geithner is taking the unprecedented step of returning to Europe to attend the meeting with euro zone finance ministers this Friday, a week after attending the G7 conference.
Inflation concerns within the U.S. have seemed to ebb as import pricing fell for the second time in the last three months. Export prices rose after a decline last month. “A lot of it has to do with the moderation in commodities prices,” Sean Incremona, a Senior Economist at 4Cast Inc. in New York, said. “[Minus food and energy,] inflation appears pretty stable. A lot of the upside is starting to stabilize and return to moderation.”
At 8:00 AM (CT) the APMEX precious metals spot prices were:
- Gold - $1,830.70 – Up $15.40.
- Silver - $40.67 – Up $0.40.
- Platinum - $1,816.70 – Up $6.30.
- Palladium - $719.00 – Up $7.70.