Mid-Day Gold & Silver Market Report – 11/16/2011
ANOTHER DAY, ANOTHER NEW EUROPEAN GOVERNMENT
Precious metals prices have remained relatively steady since the Morning Gold & Silver Market Report. Global markets are taking a wait-and-see approach based on current European volatility, with Spanish bond yields also approaching uncomfortable limits. The global uncertainty “underscores the renewed confidence in the Gold market,” said Walter de Wet, a precious metals analyst with Standard Bank. He added, “Our strategic view remains unchanged: Gold will push higher in 2012 with a target of $2,000 in the first quarter of 2012.”
Italy and Greece have been in the news a lot recently, mostly for austerity measures and changes in political leadership. Another country has slipped quietly under the radar for a bit; that country is Spain. Spain is the fourth-highest ranked country in the European Union. Spain is set to have a change in political leadership, and there is growing concern that much information may be hidden. The People’s Party is expected to win the majority decision in next week’s election. Alistair Newton, senior political analyst at Nomura, said, “What's likely to happen is that the People's Party take(s) control and say(s), ‘Oh my God, we have looked at the books, and it's much worse than we thought.’ There is a huge degree of uncertainty over how high it will be.” However, Newton said he fully expects the People’s Party to be “fully on board with the International Monetary Fund, Berlin and the European Central Bank.”
Former EU Commissioner Mario Monti accepted the post of prime minister in Italy. At a news conference today, Monti said, “We have received a lot of encouragement from our European partners and international authorities. … I hope this translates into a calming of the markets, especially regarding the tensions facing our country.” Meanwhile, France and Germany continue to clash over the European Central Bank’s role in fighting the debt crisis. France is looking for a Fed-like easing, while Germany opposes such a role by the ECB.
At 12:06 p.m. (CST), the APMEX precious metals prices were:
- Gold price - $1,772.90 – Down $11.30.
- Silver price - $33.94 – Down $0.56.
- Platinum price - $1,630.50 – Down $12.20.
- Palladium price - $655.60 – Down $13.40.