Mid-Day Gold & Silver Market Report – 6/23/2011
STOCKS, OIL, GOLD ALL DOWN AS INVESTORS COVER LOSSES
The markets are all sharing a down day, with oil down 5%, gold 2%, and stocks down significantly as well. The story with oil is that International Energy Agency (IEA) has released 60 million barrels to make up for lost production in Libya. For gold, the markets are seeing a selloff in order to cover losses in other areas. Gold prices have very slightly pared losses, thanks to a decline in new home sales being reported. Gold’s negative correlation to the U.S. dollar is having an effect as well, as the dollar strengthens. Stocks are down, likely due to the aforementioned new home sales report and an increase in jobless claims. The European debt crisis seems to be playing a hand in the stock market’s decline today, as well.
In Libya, a former foreign minister who defected to the side of the rebels predicts that Gaddafi will quit once he has negotiated asylum elsewhere, possibly within a few weeks. The conflict in Libya is the primary cause of the IEA releasing oil reserves. Syrian troops are pushing closer to the Turkish border, which is making Turkey uneasy. Hundreds of refugees in Syria have fled to Turkey to escape an assault. Turkey has traditionally remained neutral in matters in Syria, but the country has recently become critical of Syrian president Assad.
There are not many factors in the world right now that would normally push gold prices down, however with the geopolitical tension in the Middle East, the European debt crisis, and the economic uncertainty in the U.S., there seem to be plenty factors that traditionally would support gold.
At 12:41 pm (CT) the APMEX precious metals spot prices were:
- Gold - $1,521.50 (down $32.40 on the day)
- Silver - $35.15 (down $1.68)
- Platinum - $1,696.60 (down $56.80)
- Palladium - $748.20 (down $24.40)