Mid-Day Gold & Silver Market Report – 9/19/2011
DOLLAR RISES, AS DO GREEK DEBT FEARS
Since the Morning Gold & Silver Market Report, precious metals prices have tumbled, largely due to the rising value of the dollar and continued skepticism over a resolution of the debt situation in Greece. "Given ongoing problems in the eurozone and the financial system, safe-haven demand should remain strong [for gold]," said Carsten Fritsch, analyst at Commerzbank. Platinum and Palladium are seeing lowered prices due to decreased auto industry demand.
The news out of today’s teleconference with the International Monetary Fund (IMF) and European Union (EU) officials was not what a lot of investors were hoping to hear. "The ball is in the Greek court. Implementation is of the essence," Bob Traa told an economic conference. There are very large obstacles facing the Greek bailout. There is no public support of austerity measures or the government in general. There are concerns that Greece is being made to be the scapegoat for a failure to act by eurozone policymakers. Without the loan, Greek government officials have said the country will run out of cash in mid-October without support. Chancellor Angela Merkel of Germany is facing mounting pressure from her constituents that do not want to help the eurozone, losing a key election for her party. Former IMF Director, Dominique Strauss-Kahn, also came out in an interview saying, "[EU] governments are not solving things, they are kicking the problem down the road, and the snowball is growing and making the problem bigger and bigger."
In other global news, France has come out denying they have a mercenary presence in Libya. The fighting continues for rebel forces trying to procure Muammar Gaddafi’s home city of Sirte. There are inconsistent reports of success and failure on both sides. "A group was captured in Bani Walid consisting of 17 mercenaries. They are technical experts and they include consultative officers," Gaddafi spokesman Ibrahim said on Syria-based Arrai television, which has backed Gaddafi. "Most of them are French, one of them is from an Asian country that has not been identified, two English people and one Qatari." French Foreign Minister Alain Juppe, in New York to attend a U.N. meeting, told journalists: "We have no French mercenaries in Libya."
At 12:02 PM (CT) the APMEX precious metal prices were:
- · Gold price - $1,781.70 – down $31.30.
- · Silver price - $39.41 – down $1.45.
- · Platinum price - $1,776.00 – down $40.90
- · Palladium price - $716.00 – down $20.90