Closing Gold & Silver Market Report – 10/19/2011
FEAR OF EURO ZONE CALAMITY DRIVES MARKETS IN LATE DAY TRADING
Gold and silver have remained relatively unchanged since the mid-day report. However, stock markets, which were calm in early trading, have sold off somewhat this afternoon.
Greece is expected to pass more austerity measures despite protests in the streets by the Greek populace. Greece was basically shut down today due to mass strikes. Meanwhile, negotiations for bailouts for debt-laden EU countries have broken down and French President Nicolas Sarkozy is heading to Germany to continue the talks. The situation spreads far beyond Greece, as Moody’s has downgraded 16 more entities within Spain, one day after downgrading the Spanish government as a whole. This adds to the tension within the talks by increasing the stakes and the urgency for Europe to come to a final agreement.
The Federal Reserve released its Beige Book, prepared for the next meeting of the Federal Open Market Committee, shows very weak economic growth in the U.S. Among the weakest sectors of the economy were Banking & Finance. Analysts expect the current easy-money stimulus policies from the Fed to continue for some time.
At 4:15 pm (CT) the APMEX precious metals spot prices were:
- Gold - $1,648.80 – Down $8.00.
- Silver - $31.32 – Down $0.55.
- Platinum - $1,519.50 – Down $21.20.
- Palladium - $607.00 – Down $14.90.