Closing Gold & Silver Market Report – 7/11/2011
GOLD CONTINUES UPWARD AMID EQUITIES LOSSES – Concern over Europe’s sovereign debt crisis pushed gold up today, aided by a significant drop in stock prices.
Italy and Spain seem to be in ever-increasing trouble lately. In the last few trading days the interest rates investors demand to loan money to the two governments skyrocketed, indicating a growing fear that investors might not get paid back. A rise in interest rates reflects an increase in risk.
With Europe’s debt crisis as yet unresolved, Barclays Capital released a report stating it expects the dollar to rise in value over the next three months. They compare the dollar to the Swiss franc, which has been a safe-haven currency and has held its value during the financial turmoil and recession of the last few years. “If, however, euro area events get much worse, we think it would become an increasingly important problem for global financial markets. In which case, even given the weak payrolls data, the dollar looks best placed to benefit.”
Most advisors suggest at least a small allocation of assets to Gold as a hedge against market uncertainty and inflation.
At 12:08 PM (CDT) the APMEX precious metals spot prices were:
- Gold - $1,555.80 – Up $13.20 on the day.
- Silver - $35.81 – Down $0.79.
- Platinum - $1,729.50 – Down $3.90.
- Palladium - $769.60 – Down $11.30.