Mid-Day Gold & Silver Market Report – 9/16/2011
EUROPE REBUFFS GEITHNER, PAYROLL DATA AROUSES CONCERNS
Trading this morning has been relatively brisk based largely on concerns emanating from U.S. Treasury Secretary Timothy Geithner’s advice being relatively ignored by European Union (EU) financial ministers and payroll data causing at-home economic concerns to grow. Since the Morning Gold & Silver Market Report, precious metals have risen on the re-establishment of safe-haven demand.
Geithner attended the meeting with EU financial ministers after attending last week’s G-7 Conference as well. However, his reception has been chilly at best. Austrian Finance Minister, Maria Fekter, said, "He conveyed dramatically that we need to commit money to avoid bringing the system into difficulty…I found it peculiar that even though the Americans have significantly worse fundamental data than the euro zone, that they tell us what we should do and when we make a suggestion ... that they say no straight away." Jean-Claude Juncker, the Chairman of the Eurogroup, basically came out saying that they would not discuss their currency issues within the eurozone with someone from outside the currency bloc. He told reporters, "We are not discussing the expansion or increase of the EFSF with a non-member of the euro area.”
The news on jobs is relatively disappointing as well. Payrolls fell in 30 U.S. states. The issue is that jobs are not being created to spur income growth. With income growth confidence and consumer spending would increase and the country might see some economic growth. “Consumers and businesses have turned very cautious,” John Herrmann, a Senior Fixed-Income Strategist at State Street Global Markets in Boston, said. “The recent spate of layoff announcements suggests that there could be deeper cuts to payrolls toward year-end, impacting holiday spending.”
At 12:00 PM (CT) the APMEX precious metals spot prices were:
- Gold - $1,816.40 – Up $36.50.
- Silver - $40.91 – Up $1.39.
- Platinum - $1,817.00 – Up $33.40.
- Palladium - $737.20 – Up $9.70.