Morning Gold & Silver Report – 1/16/2012
FIRST FRANCE, THEN AUSTRIA, ITALY, SIX OTHERS DOWNGRADED BY S&P
Precious metals prices are rising this morning as last Friday’s credit rating downgrades add even more uncertainty to the eurozone debt crisis.
Standard & Poor’s (S&P) downgraded France’s AAA rating before markets closed Friday. Shortly after Friday’s close, the S&P also downgraded Austria’s AAA rating and downgraded Italy to the same level as Ireland. The credit ratings for six other eurozone nations were downgraded, as well. European markets opened lower Monday but are rebounding with very low volatility. The U.S. stock market is closed Monday.
Iran’s Foreign Ministry has confirmed it did receive a letter from the United States concerning the Strait of Hormuz. The United States is warning Iran not to take action to close the Strait of Hormuz. This strait serves almost one-fifth of the world’s oil demand. Iran, which is OPEC’s second-largest oil producer, has threatened to close the strait as retaliation on wider efforts to enforce oil embargos on Iranian oil exports. There has been no official Iranian response to the letter from the U.S.
At 8 a.m. (CST), the APMEX precious metals spot prices were:
- Gold - $1,644.50 – Up $12.70.
- Silver - $29.88 – Up $0.29.
- Platinum - $1,497.90 – Up $10.10.
- Palladium - $641.00 – Up $5.00.