Morning Gold & Silver Market Report – 9/21/2011
ALL EYES ON FOMC; BULLION VAULTS FULL
In overnight trading, gold prices rose before falling to the current level on a stronger dollar. U.S. stock futures are pointing to a positive open this morning for Wall Street, thanks to optimism that positive news for the market will emerge from the Federal Open Market Committee (FOMC) meeting later today. As per usual when the FOMC meets, all eyes are on the Federal Reserve and the potential action that will be taken to support the slipping economy. Kathy Lien of GFT said, “The reason why the market is so dead-set on more stimulus is because the recovery in the U.S. has come to a screeching halt and everyone, including the Fed, agrees that the economy desperately needs help.”
Greek policymakers are set to outline layoffs of public-sector workers, among other austerity measures, in order to secure a loan which will keep them from running out of money next month. The Greek public has not taken well to austerity measures so far, and this latest round is also set to include pension and wage cuts for civil servants, tax hikes on heating fuel, and an extension of a property tax.
Swiss Precious Metals, Barclays Capital, The Brink’s Co., Duetsche Bank, and the Perth Mint are all planning to expand or considering an expansion, as physical space in bullion vaults is filling up. In the case of Swiss Precious Metals, the European debt crisis is one factor that has caused a 500% increase in demand in the past year.
At 8:04 am (CT) the APMEX precious metals spot prices were:
- Gold - $1,802.00 – Down $5.60.
- Silver - $40.41 – Up $0.26.
- Platinum - $1,785.00 – Up $0.10.
- Palladium - $720.50 – Up $1.70.