GOLD HOLDS ON TO GAINS IN MORNING TRADING
Gold, which posted big gains in overnight trading, held on to most of the climb it made, although prices did slip slightly. Silver is higher since this morning’s Market Report, having posted an increase of more than 3.5%. Platinum and palladium prices also are up today, although the gold price is still higher than platinum’s, a pattern rarely seen in markets lately.
Although stock markets are higher today, fear surrounding the European debt crisis is still the main focus of headlines. The chief economist of Organization for Economic Cooperation and Development (OECD), Pier Carlo Padoan, said, “The euro area crisis represents the key risk to the world economy at present, with concerns about sovereign debt sustainability having become increasingly widespread. … What we see now is contagion rising and hitting probably Germany, as well.” He reflected on the congressional Super Committee’s failure to cut the U.S. deficit and how that will lead to automatic spending cuts, saying, “The resulting fiscal tightening, which would come automatically, would in our view likely generate a recession in the United States.”
Bond dealers are predicting another round of stimulus spending by the Federal Reserve, according to a Bloomberg survey of the 21 primary dealers in treasury bonds. Sixteen of the 21 dealers said they predict the Fed will start the next round of stimulus sometime in the first quarter of 2012. Most are predicting that the Fed will buy a large amount of mortgage bonds in an effort to lower mortgage interest rates and stimulate the housing market.
At noon (CST), the APMEX precious metals spot prices were:
- Gold price - $1,712.50 – Up $26.00.
- Silver price - $32.12 – Up $1.04.
- Platinum price - $1,541.80 – Up $7.70.
- Palladium price –$581.90 – Up $9.70.
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