Closing Gold & Silver Market Report – 9/28/2011
GERMANY PREPARES TO KICK THE CAN ONE MORE TIME
Precious metals prices have dropped significantly over the last few hours, mirroring the selloff in the stock market.
Germany’s parliament is set to vote tomorrow to expand the European Financial Stability Facility (or EFSF), the official name of the bailout fund designed to prevent eurozone nations from defaulting on their debt. “…[O]ut of fear of contagion, the leaders in Brussels and Frankfurt have continuously tried to minimize and sweep it under the rug,” said Jeffrey Frankel, a professor at Harvard University’s Kennedy School of Government. The EFSF itself has come under scrutiny recently, with doubts about its ability to serve its purpose. There are many events that could derail the entire operation, as CNBC outlines. Meanwhile, Greece is roiling with protests over the possibility of even more spending cuts and higher taxes.
Oil prices could be predicting another recession, as crude has fallen more than 15% in the last three months on fears that a recession will temper demand. “Any resolution in Europe is likely going to result in lower spending," independent oil analyst Andrew Lipow said. "That means lower growth rates and poorer demand for oil." The U.S. Department of Energy also reported that gasoline demand was down last week by 2.4% from the previous year.
At 3:55 PM (CT) the APMEX precious metals spot prices were:
- Gold - $1,611.40 – Down $42.10.
- Silver - $29.90 – Down $1.67.
- Platinum - $1,531.50 – Down $45.50.
- Palladium - $622.40 – Down $29.60.