Closing Gold & Silver Market Report – 10/18/2011
Silver & Palladium Prices Go Positive, While Gold & Platinum Recover - The stock market boomed again today, on reports that Germany and France are moving closer to an agreement on how to fix the European debt crisis. This news also turned precious metal prices around with silver and palladium making positive gains. (There are rumblings in the market again about Russian palladium stockpiles running low, which could cause a global supply shortage of palladium.) Investors continue to look for an actual plan to solve the euro debt crisis, but markets have been moving on any signs of optimism.
A less optimistic report shows that Moody’s Investors Service has downgraded Spain’s government bond rating from A1 to Aa2. The agency said that a declining global economic picture is hurting Spain’s chance of their own economic recovery. They also stated that, “no credible resolution of the current sovereign debt crisis has emerged.”
U.S. Federal Reserve Chairman, Ben Bernanke, said in a speech today that the Fed may need to halt future asset bubbles with monetary policy. Prior to the financial collapse of 2008, Mr. Bernanke, as well as most central banks, would not have considered interest rates as a tool to burst asset bubbles. Although those views may have softened, Mr. Bernanke said that regulation, supervision and monitoring would remain the first line of defense.
At 4:00 PM (CT) the APMEX precious metals prices were:
- Gold price - $1,661.50 – Down $17.10.
- Silver price - $32.08 – Up $0.22.
- Platinum price - $1,537.00 – Down $14.80.
- Palladium price - $625.90 – Up $7.10.