Morning Gold & Silver Market Report – 10/11/2011
ALL EYES ON SLOVAKIA; GARTMAN: GOLD NOT FOOLED BY EURO DEAL
Overnight trading has seen gold pull back along with U.S. stock futures. The dollar is stronger versus the euro, thanks to a country that doesn’t often make front-page news. Slovakia is voting today to approve required measures which will allow a beefing-up of the European Financial Stability Facility. Many are speculating that this vote will not pass, which may lead to a shake-up in Slovakia’s government. Adam Cole of RBC Capital Markets said, “Should the vote fail, therefore, it is highly likely to be followed by a second, successful vote and the rapid dissolution of parliament. This could happen within a matter of days and possibly as early as today.” Investors are also awaiting the release of the minutes of the latest Federal Reserve meeting, which are set to be released this afternoon.
Dennis Gartman has an idea regarding gold gaining ground yesterday against signs that would normally see it pull back. Gartman speculates firstly that the negative correlation between stocks and gold may be changing, but the more likely idea is that gold investors aren’t sold on the Franco-German plan to shore up the debt crisis in Europe. If the markets believed a viable plan was on the horizon, Gartman thinks gold would have declined. He concluded, “The changes have to be voted upon and voted upon unanimously. I think the plan is quite silly and so does the market. That’s why they bid gold up.”
At 8:00 am (CT) the APMEX precious metals spot prices were:
- Gold - $1,664.10 – Down $8.70.
- Silver - $31.67 – Down $0.36.
- Platinum - $1,516.30 – Down $8.80.
- Palladium - $605.00 – Down $11.30.