Mid-Day Gold & Silver Market Report – 12/20/2011
GOLD PRICES CLIMB; REPUBLICANS OPPOSE SENATE-PASSED TAX CUT
Gold prices have continued to climb in morning trading, along with prices for Silver, Platinum, and Palladium. One analyst attributed Gold’s rise to “dollar weakness, and it is likely that some traders have viewed the recent selloff as excessive and are tentatively re-entering the Gold market.” The analyst continued, “Bullion demand remains robust in Europe and appears to be picking up in Asia again, and this will likely support prices at these levels.”
The House of Representatives is expected to vote today on extending the payroll tax cut. Although an agreement to extend the tax cut and unemployment benefits has passed in the Senate, congressional Republicans have indicated that they will reject the proposed two-month extension. Conservative leaders are unhappy that Republican-requested cuts to President Barack Obama’s health care law and changes to the unemployment insurance system were removed from the bill passed in the Senate. If an agreement is not passed by the Jan. 1 expiration date, payroll taxes for about 160 million workers in the U.S. will revert to 6.2%, increasing by roughly $1,000 the amount paid by the average family.
In a speech Tuesday in Athens, Greece’s finance minister indicated that a debt-swap agreement between Greece and its creditors is near. Finance Minister Evangelos Venizelos stated that Greece is close to an agreement on private-sector involvement, adding, “I believe this. And it is feasible if our partners respect the accord of Oct. 26 and Oct. 27.” Without an agreement by investors to write off portions of its monetary obligations, Greek debt is projected to swell to nearly twice the size of the country’s dwindling economy. The agreement, which is widely regarded as essential for Greece to avoid an economic collapse, would see 50% of Greece’s privately held 206 billion-euro debt written off in an attempt reduce Greek debt to 120% of GDP by 2020.
At 12:02 p.m. (CST), the APMEX precious metals spot prices were:
- Gold - $1,617.60 - Up $20.90.
- Silver - $29.57 - Up $0.67.
- Platinum - $1,431.30 - Up $16.70.
- Palladium - $630.20 - Up $11.50.