Mid-Day Gold & Silver Market Report – 11/17/2011
GOLD SERVING PURPOSE IN SHORING UP LOSSES
Gold has dipped since the Morning Gold & Silver Market Report due to the ongoing debt crisis in Europe and the effect the crisis is having on stocks. Marcus Grubb of the World Gold Council said that with the debt crisis lingering, “investors move out of risky assets, they move out of equities, they move into short-dated bonds and into cash, and they even move out of gold because they tend to take profit in it to shore up losses in the rest of their portfolio.” David Meger of Vision Financial Markets said, “We have seen some (gold) selling in the past few sessions because of the dollar’s strength and debt crisis in Europe. However, it’s a matter of time before the safe-haven story is back.”
The weekly jobless claims report was released this morning, and claims hit a seven-month low. Good news for the economy didn’t last long, however, as other data released showed that factory activity slowed on weak orders in the Mid-Atlantic region. Joel Naroff of Naroff Economic Advisors said, “Economic conditions are moving upward at an accelerating pace. However, two major roadblocks stand in the way of solid growth: rising oil prices and European debt issues.”
But most of the attention continues to focus on Europe. Today, police in Greece faced protesters demonstrating against the austerity measures that are necessary to accept the bailout package from the eurozone. Protests in Greece are nothing new, but this is the first such protest faced by the national unity government. In Italy, new Prime Minister Mario Monti said that Italians were confronting a “serious emergency.” He said, “Only if we can avoid being seen as the weak link of Europe can we contribute to European reforms.”
At noon (CST), the APMEX precious metals spot prices were:
- Gold - $1,722.10 – Down $54.20.
- Silver - $31.41 – Down $2.46.
- Platinum - $1,584.50 – Down $46.70.
- Palladium - $605.40 – Down $51.10.