Closing Gold & Silver Market Report – 11/10/2011

Precious metals rise against today’s lows. News of Greece and Italy has slowed down today and markets are up around the world, but not all have recovered from yesterday’s losses. Yes, Italy and Greece are very much on-going and vital issues; however, some feel as though the markets have reacted sufficiently and that the world can move forward from here. Art Hogan, head of product strategy, equity research at Lazard Capital Markets, said, “We woke up and found the world didn’t come to an end… Today we know who the prime minister of Greece is, and soon we hope to know who the prime minister of Italy is.”

Fears of inflation have ebbed, as Italy was able to borrow 5 billion euros for one year. Although the loan is at a very high interest rate, on the plus-side, there was a demand for the auction. Unlike the situation with Greece, Italy’s issue was addressed much quicker, and as a result has eased the fears of many that this will not be as long and arduous a process as Greece has been.

Profit-taking and risk appetite had helped to push precious metals down today, but metals are still going strong. James Moore, research analyst at FastMarkets.com, explains, “Gold yesterday set a new all-time high in Indian Rupee terms and hit its highest in euro’s and sterling in over a month… Short-term, the complex is likely to remain under pressure… [but] the metal will benefit from further flight-to-safety demand.”

At 3:50 p.m. (CST), the APMEX precious metals spot prices were:

· Gold - $1,756.90 - Down $30.69.

· Silver - $34.12 - Down $0.29.

· Platinum - $1,624.40 - Down $19.30.

· Palladium - $648.70 - Down $8.20.