Mid-Day Gold & Silver Market Report - 10/11/2011
SLOVAKIA CONTINUES TO HINDER, GOLD HOLDS A BRIGHT OUTLOOK
Precious metals have slipped a little, but for the most part have remained steady since the Morning Gold & Silver Market Report. The last main hurdle remaining to supporting the euro zone measure of aid to Greece lies in the hands of the Slovakian government. The hold-up in the vote is that the Slovakian Prime Minister, Iveta Radicova, has instilled measures within the vote directly to her government, for government concessions within Slovakia. So that portion may not pass, but the portion involving the European Financial Stability Facility should pass easily, according to officials. It just shows how difficult it is coming to a consensus within the euro zone.
European Central Bank President, Jean-Claude Trichet, has issued a warning that the European debt crisis has reached a systemic level. Some of the relatively small countries are now influencing some of the larger economies in the region in a negative fashion. Greece is the match that started the fire, but that fire has led to bank failures (Dexia) and credit downgrades for a number of euro zone nations. “The crisis has reached a systemic dimension,” Trichet told European lawmakers in Brussels today. “Sovereign stress has moved from smaller economies to some of the larger countries. The crisis is systemic and must be tackled decisively.”
The impact this has had on gold has been a downward trend, but the outlook continues to be beneficial long-term. "Intraday, gold most of the time tracks currency moves. We're seeing the euro under a bit of pressure today, which is dragging down gold," said Standard Bank Analyst Walter de Wet. "But we think if you take a six to 12 month view, gold will continue to trade inversely with risk, especially if it is driven by credit issues. If the solution seems biased towards creating more liquidity, that should push gold higher."
At 12:01 PM (CT) the APMEX precious metals spot prices were:
- Gold - $1,666.40 – Down $6.40.
- Silver - $32.15 – Up $0.13.
- Platinum - $1,521.10 – Down $4.00.
- Palladium - $608.80 – Down $7.50.