Mid-Day Gold & Silver Market Report – 7/8/2011
JOBS REPORT ANEMIC DESPITE PREDICTIONS - The big story affecting the market today is non-farm payroll data for June being worse than it was in May; in fact, June saw the fewest number of jobs added in nine months. Expectations for June were that 90,000 or more jobs would be added, but when only 18,000 new jobs came in, the disparity between reality and predictions sent the markets into retreat. Even the euro fell in response to the news, although it did rebound some. Gold is currently the primary beneficiary of the sour news and is up for the day, hitting new two week highs.
Organizers of anti-government demonstrations in Syria have brought together thousands of protestors in the city of Hama. They are being encouraged to express a “total rejection of the governments decision to hold a national dialogue conference on Sunday.” Residents and families from Hama have been leaving for the relative safety of neighboring villages. Rebels in the street believe there is no rational way to have a dialogue with the current regime, which they brand as murderers.
In the euro-zone, insult adds to injury as any recent hope for a rally or support of Greek debt is seen as diminishing. The European Central Bank decided to raise interest rates and a political scandal is growing in Italy. Giulio Tremonti, one of the primary leaders holding up the country’s finances, was drawn in to a corruption scandal after police requested an arrest warrant for a close associate. Not letting the poor economic news stop them, Greece’s Finance Ministry is setting plans to crack down on the country’s top 10,000 tax cheats in an effort to collect some of the $58 billion that is owed in taxes and fines. A statement made by the ministry earlier this morning said that of the estimated 900,000 Greek residents and companies that are indebted to the state, “90 percent of the money is owed by only a combined 14,700 taxpayers and firms.” A plan is currently being put into place for collecting the delinquent funds.
At 12:00 pm (CT) the APMEX precious metals spot prices were:
- Gold – $1,542.30 – Up $10.70 on the day.
- Silver - $36.6 – Up $0.04.
- Platinum - $1,736.70– Down $6.30.
- Palladium - $779.70 – Down $8.80.