Morning Gold & Silver Market Report – 7/7/2011
PRIVATE JOBS UP; ECB RAISES RATES
The private sector added 157,000 jobs from May to June according to this morning’s ADP report. Although still not enough to make a significant dent in the unemployment rate (which remained at 9.1%), it did beat forecasts. Gold has recovered from early-morning losses and joined silver in the black.
The European Central Bank (ECB) raised interest rates for a second time this year, as they continue to take steps to curb rising inflation. This move was expected, as euro zone inflation rose to 2.7% in June, exceeding the ECB target rate of 2%. The Bank of England once again kept their rates as-is. ECB President Trichet will conduct a closely-watched press conference today. The ECB put up a major hurdle to the agreement for the second Greek bailout, when they stated they will refuse Greek bonds as collateral if all the major credit rating agencies treat this bailout as a default.
The media continues to focus our attention on the US Debt ceiling and the Greek debt crisis, but according to an article in today’s Business Insider, there are 20 stress points that need to be watched. Of the top 15, only five events are financially related, such as the number one concern – the US dollar collapse. The remaining points are geopolitical such as the Taiwan/China armed hostility, Israel/Iran armed conflict and the potential for a war between India and Pakistan. Investors need to be cautious not to let the media narrow their scope of world events. There is much going on across the planet.
At 8:00 am (CT) the APMEX precious metals spot prices were:
- Gold – $1,530.40 – Up $0.20 on the day.
- Silver - $36.46 – Up $0.49.
- Platinum - $1,739.20 – Up $5.80.
- Palladium - $783.50 – Up $8.30.