Closing Gold & Silver Market Report – 12/20/2011
ECB MAY SELL GOLD TO COVER DEBT
Gold prices are holding steady since the Mid-Day Gold & Silver Market Report with a positive boost for the day. It is a known fact that many central banks are increasing their holdings in gold. Financial analysts are curious if the distraught European countries such as Italy and France will have to sell their gold to comply with their financial obligations. At this time, Italy holds the world’s fourth largest supply of gold with a total of 2,452 tonnes, which is more than both France and China hold. If European countries are forced to sell their gold, their power position could quickly be taken. This is exactly what occurred a century ago when the U.S. bought gold from the French, Germans and British.
The outlook of the U.S. economy is still unpredictable at this time. Analysts have suggested the European debt crisis along with China’s economic uncertainty could potentially weigh heavily on the U.S. if the country goes into a recession or begins a strong recovery. However, the U.S. seems to hold its economic future in its own hands. Currently the U.S. has serious issues with a soaring deficit, high unemployment rate and low housing market. Nigel Gault with IHS Global Insight’s reflected on the U.S. by saying, “We’re still pretty cautious, we don’t have enough domestic strength to really take off, and at the same the rest of the world is decelerating and in some time going to into recession.”
At 4:00 p.m. (CST), the APMEX precious metals spot prices were:
- Gold - $1,616.90 - Up $20.20.
- Silver - $29.60 - Up $0.70.
- Platinum - $1,432.90 - Up $18.30.
- Palladium - $628.10 - Up $9.40.