Morning Gold & Silver Market Report – 7/14/2011
GOLD IN UNCHARTED TERRITORY YET AGAIN
Gold is hovering above yesterday’s record-high close thanks to the fallout of Moody’s placing the U.S. bond rating on review. Silver is also enjoying moderate gains of approximately 3%. Yesterday’s Aden Report explained, “With one crisis following another, it’s not surprising that gold didn’t stay down long. It again emerged as the world’s safe haven and the upside is wide open.” A different analyst looks at the charts and says that “gold is in a most bullish position – out in the clear at a new high – with no overhead resistance above it.”
Surprisingly, economists were spot-on with their consensus of a drop to 405,000 in the jobless claims report. U.S. stock futures are pointing to a higher open for Wall Street after the news. The dollar is strengthening after taking a dive last night as a result of President Obama “abruptly” walking out of debt-ceiling negotiations. Obama took a very stern stance in the face of #2 House Republican Eric Cantor. The President is not moving from his refusal to sign a short-term deal, while the Republicans don’t seem to be moving from their refusal to allow any tax hikes and that any increase in the debt ceiling should be matched by spending cuts.
Last week, PIMCO chief Mohamed El-Erian explained that Italy was a major focal point of the European sovereign-debt crisis. Today, Italy had what is considered to be an encouraging bond auction and found strong demand. The European debt crisis has so far been focused on relatively smaller countries (Greece, Ireland, Portugal). Italy is the continent’s fourth-largest country, so debt issues there would obviously have a much bigger impact on the euro than some of the other countries.
At 8:01 am (CT) the APMEX precious metals spot prices were:
- Gold - $1,591.60 – Up $4.80 on the day.
- Silver - $39.22 – Up $1.01.
- Platinum - $1,779.50 – Up $12.50.
- Palladium - $789.00 – Up $3.00.