Mid-Day Gold & Silver Market Report – 9/30/2011
STOCKS, ECONOMIES, LEGISLATION, OH MY…
Gold prices are on the rise since the Morning Gold & Silver Market Report, while remaining precious metals prices have remained steady. This was primarily due to safe-haven appeal being reaffirmed by a number of investors due to growing concerns of global economic debt crises and the strengthening of the U.S. dollar. According to Brien Lundin, Editor of Gold Newsletter, “Further indications of weakening in China would be bearish for gold and the entire commodity sector, although the massive physical gold demand we’ve seen in Asia, particularly India, following the price drop would be supportive of the yellow metal…On the other hand, any hints of monetary easing in the U.S. or Europe would send gold quickly higher, possibly forcing a steep, short-covering rally.”
Stock markets stumbled a bit today based on reports of global economic slowdown. “Investors are hypersensitive to any data at the moment,” Lawrence Creatura, a Rochester, New York-based fund manager at Federated Investors Inc., said in a telephone interview. “Ordinary announcements have heightened significance in an environment where investors are watching for potential shifts in the trajectories of the domestic and global economies.”
In a surprising show of support from German lawmakers, a stronger euro zone bailout consensus has been reached. "The result of the vote is a strong signal for Europe. The broad majority in parliament clearly shows that Germany is committed to the euro and to protecting our currency," said Hermann Groehe, general secretary of Chancellor Angela Merkel’s Christian Democratic party. This was further supported by an unnamed senior European Union official whom stated, "There is a growing realization, even among the more reticent, that the July 21 package is yesterday's war, and we need to go further.”
At 12:00 PM (CT) the APMEX precious metals spot prices were:
- Gold - $1,633.80 – Up $14.50.
- Silver - $30.33 – Down $0.24.
- Platinum - $1,526.00 – Down $5.30.
- Palladium - $611.00 – Down $14.60.