Midday Gold & Silver Market Report – 11/8/2011
GOLD PASSES $1,800 AS CONTAGION THREATENS EURO ZONE
Precious metals prices have gained slightly this morning following a meeting of Greek party leaders. The subject was whether to make Lucas Papademos the new prime minister. There was no word about whether Papademos had accepted the position. Panagoitis Dimitriadis, a public sector pensioner, commented on the severity of this decision, saying, “If this government doesn’t work out, we are lost.”
Greece is not the only country suffering from lack of continuity in government. Italy just voted to approve its latest budget, but the vote was won without a majority. Some fear this leaves the door open for Italy to follow in the footsteps of Greece in regards to a confidence vote and leadership change. There are thoughts that a replacement of leadership will lead to further instability, and U.S. stocks have reacted to such fears by losing early morning gains.
Italy, the world’s eighth-largest economy, takes center stage as the primary threat to the stability of the euro zone, which includes 17 countries. Leaders are attempting to prevent a bond market meltdown that would create a contagion effect, which would likely bring down the larger euro zone economies.
At 11:45 a.m. (CST), the APMEX precious metals spot prices were:
- Gold - $1,805.40 – Up $12.30.
- Silver - $34.34 – Down $0.48.
- Platinum - $1,675.50 – Up $17.50.
- Palladium - $678.70 – Up $14.80.