Morning Gold & Silver Market Report – 10/19/2011
PHYSICAL METALS STILL DESIRED; OPTIMISM IN EUROPE, BUT WHY?
Gold and U.S. stock futures are fairly flat this morning. In the U.S., inflation data was mainly in line with expectations in a report released this morning. Higher hopes of a resolution to the European debt crisis has investors more interested in risk, and in some cases away from safe haven investments like gold.
A meeting of euro zone leaders this Sunday could bring about changes to investors’ appetite, according to VTB Capital. They explained, “The situation with gold could well change should risk aversion escalate after 23 October, provided the broader market is disappointed by the EU’s debt crisis management with policymakers failing to leverage the [European Financial Stability Facility] substantially and avoid a structural Greek default.” They added, “…physical buyers were active above recent dips,” confirming the still-present desire among investors to hold physical metals.
With all the optimism coming out of Greece, one might think there was some good news to report. As Greek citizens protest in the streets of Athens, Prime Minister George Papandreou vowed to successfully implement another round of austerity measures. The strikes are seeing empty classrooms and businesses as students, workers, and business owners alike are among those protesting the proposed measures. The European Commission was busy as well, raiding banks (such as Deutsche Bank) in a widespread probe into suspected fixing of lending between banks. This is the third major investigation of the finance sector by the Commission this year.
At 8:00 am (CT) the APMEX precious metals spot prices were:
- Gold - $1,656.50 – Up $1.70.
- Silver - $32.05 – Up $0.18.
- Platinum - $1,535.50 – Down $5.20.
- Palladium - $627.40 – Up $5.50.