Mid-Day Gold & Silver Market Report – 9/15/2011
GOLD SLIDES AS TRADERS TAKE ON MORE RISK
Gold and silver prices have both slipped since the Morning Commentary. Gold has been stronger than silver, with gold only falling by about 0.1% and silver slipping by 0.8% since the Morning Commentary.
It seems the market may be growing more comfortable with the Greek debt situation. World leaders are working diligently to keep Greece from economic ruin, and, to prevent possible contagion from spreading, creating a plan to provide much-needed liquidity to European banks. Traders’ confidence seems to be buoyed by the news. Global stock indexes are rising today as investors sell some of their safe havens (like gold) to purchase riskier assets. David Wilson, an analyst at European bank Societe Generale, told CNBC, “…[T]here must be a bit more positivity for holding riskier assets… I still think the general trend for gold is upward, but it's a saw-toothed pattern and at the moment, we're on the downside.”
Further pressuring gold prices, the Euro rose in value relative to other currencies as traders seek to capitalize on the new perception of stability in Europe. Alan Ruskin, Global Head of G-10 FX Strategy at Deutsche Bank said in an email, “To the extent that term funding has been an important negative risk factor, the latest coordinated measures takes care of one (of many) negative risk factors.”
At 12:00 PM (CT) the APMEX precious metals spot prices were:
- Gold - $1,782.30 – Down $42.70
- Silver - $39.59 – Down $0.97.
- Platinum - $1,784.30 – Down $34.60.
- Palladium - $728.80 – Up $3.80.