Mid-Day Gold & Silver Market Report – 7/11/2011
OBAMA BEARS DOWN ON DEBT CEILING TALKS
With the August 2nd deadline for the U.S. to raise the debt ceiling and avoid defaulting on the national debt steadily coming closer, President Obama said in a news conference this morning that he “will refuse to sign any short-term deficit deal.” The President indicated that he would be meeting daily with Washington lawmakers until a deal is made, but also that he is pressing for a deficit-reduction deal that includes changes to existing entitlement programs, asking, “If not now, when?” The Treasury Department has made it clear that if the debt limit is not raised by August 2nd, the country won’t have the money to pay its bills. Experts have warned that if the U.S. defaults on its debt, it could slip into another recession, jeopardize the status of the dollar as the world’s reserve currency, and have a drastic negative impact on the global economy.
In Europe today, finance officials from the European Union are meeting to discuss the options available for dealing with the Greek debt crisis, with fears that debt problems will soon spread to Italy a major concern. Angela Merkel, Chancellor of Germany, is pushing for a quick consensus on a rescue package for Greece, saying of Italy’s proposed austerity measures, “I have firm confidence that the Italian government will approve just such a budget… and, in so doing, Italy will send a signal that it feels committed to consolidation and fighting debt.” However, Mike Riddell, a fund manager with M&G in London, warns that that both Italy and Spain could be downgraded in the near future, describing the affect on global markets of such an action as “carnage.”
At 12:08 PM (CDT) the APMEX precious metals spot prices were:
- Gold - $1,549.80 – Up $7.40 on the day.
- Silver - $36.01 – Down $0.60.
- Platinum - $1,728.00 – Down $5.40.
- Palladium - $769.50 – Down $11.40.