Closing Gold & Silver Market Report – 7/7/2011
GOLD HOLDS RELATIVELY STEADY AS INVESTORS’ FEARS ARE CALMED – Gold prices were relatively flat today, as news rolled about employment data, anti-inflationary measures by the European Central Bank, aid for Portugal, among others. Stocks continued their run up on the news, with gold up slightly.
The ECB raised interest rates today, while taking steps to make Portuguese bonds more attractive to investors, in an effort to prevent another Greece-like catastrophe. The interest rate increase was a measure to fight inflation, and follows a period of record low interest rates, a measure often used by central banks as a stimulus in times of recession. The euro climbed as a result, halting a two day losing streak. At the same time, continued fears of the euro zone debt crisis buoyed gold prices. Portugal, Ireland, Greece, Italy, and Spain all have extremely high national debt loads and are being watched very closely by wary investors.
Gold is a safe-haven asset, and many experts cite it as insulation against an uncertain future.
At 4:15 pm (CT) the APMEX precious metals spot prices were:
- Gold – $1,533.90 – Up $3.70 on the day.
- Silver - $36.49 – Up $0.52.
- Platinum - $1,749.40 – Up $16.00.
- Palladium - $785.90 – Up $10.70.