Closing Gold & Silver Market Report – 9/15/2011
GOLD DROPS TO THREE-WEEK LOW; ECB ANNOUNCES DOLLAR FUNDING
In the time between the Mid-Day Gold & Silver Market Report and the posting of this report, gold has rebounded slightly. Despite that rebound, the precious metal still ended the day down 2.5%. This reflects a drop to gold’s lowest point in three weeks. With the European Central Bank releasing details about a plan to avoid money market freezing, investors looked less to the safe haven of gold and more to riskier investments. Silver and platinum also fell during afternoon trading, with only palladium seeing any kind of an increase.
The European Central Bank (ECB) has announced that it will coordinate with several of the world’s most prominent central banks on a campaign to provide banks with the U.S. dollars needed to avoid funding deficiencies. With U.S. money market funds and other dollar lenders worried about the threat of default by Greece, some banks have found it difficult to get dollar funding for extended periods. According to the ECB, "The European Central Bank has decided, in coordination with the (U.S.) Federal Reserve, the Bank of England, the Bank of Japan and the Swiss National Bank, to conduct three U.S. dollar liquidity-providing operations with a maturity of approximately three months covering the end of the year." In response to the ECB announcement, both the euro and shares in European banks jumped dramatically.
An interesting event took place on in New York City today as business magnate Donald Trump accepted gold bullion from American Precious Metals Exchange CEO Michael Haynes as a down payment on a 10-year commercial lease for office space at the Trump Tower located at 40 Wall Street. The agreement, which marks the first time the Trump Organization has ever accepted gold bullion in lieu of a cash for a security deposit, is for the lease of the entire 50th floor of the Trump Tower to house APMEX’s marketing and finance operations. The bullion was presented to Mr. Trump in the form of three, one kilo, .9999 pure gold bars.
At 4:15 PM (CT), the APMEX precious metals spot prices were:
· Gold - $1,790.50 - Down $34.50
· Silver - $40.00 - Down $0.56
· Platinum - $1,794.20 – Down $24.70
· Palladium - $730.00 - Up $5.00