Morning Gold & Silver Market Report – 10/6/2011
OPTIMISM BOOSTS STOCKS; ECB TO ENACT BOND PURCHASE PROGRAM
Overnight trading of gold was relatively steady, while U.S. stocks are looking at another positive day, and silver, platinum, and palladium are benefitting from that optimism. Investors are hoping that eurozone policymakers will be able to work together to help out banks in that region. The European Central Bank (ECB) announced that it would not change interest rates, which brought some European stocks down overnight.
This morning, the ECB announced that they would be enacting a bond-purchase program, which has helped the euro pare some losses. U.S. Treasury Secretary Timothy Geithner is set to speak to a congressional committee later today regarding the European debt crisis. In prepared statements, he said that Europe “is so integrated with the U.S. economy, that a severe crisis there could cause significant damage in America.”
Supporting U.S. stocks was the slightly-better-than-expected jobless claims report released this morning. While most economists expected new jobless claims to rise by 19,000, in fact they only rose by 6,000. The four-week moving average moved down by 4,000, and is typically seen as a better indicator of trends because it takes out the week-to-week volatility. The stubborn unemployment rate held steady at 9.1%.
At 8:04 am (CT) the APMEX precious metals spot prices were:
- Gold - $1,643.60 – Even $0.00.
- Silver - $30.78 – Up $0.39.
- Platinum - $1,493.30 – Up $10.40.
- Palladium - $588.00 – Up $15.70.