Closing Gold & Silver Market Report – 7/14/2011
ANOTHER DAY CLOSER TO THE DEADLINE, NO PROGRESS TO REPORT – How many times can new agencies report that there’s no news to report on budget talks? The most recent talks ended tensely, with both sides deeply entrenched in their ideologies. President Obama told Republican lawmakers today “Don’t call my bluff,” alluding to his threats to veto any short term, stopgap bargain. A group of House Republicans have sent a letter to President Obama stating that even if the debt ceiling is not raised, the government will still have enough money to pay U.S. creditors, Social Security and military pay after the Aug 2 deadline. However, if the debt ceiling is not raised senate Democrats argue that after those bills are paid, there will be little money left for anything else. Money that is used for things like the Federal Bureau of Investigation, border security, health research, the Department of Education, and food inspections.
Federal Reserve Chairman Ben Bernanke clarified his comments yesterday, stating a third round of quantitative easing was not immediately in the works. Gold tumbled from a new all-time high of $1,594.90 on the news. However, open interest, a measurement of the number of outstanding futures contracts, swelled by 35,000, indicating strong buying.
At 12:12 PM (CT) the APMEX precious metals spot prices were:
- Gold - $1,587.70 – Up $2.20 on the day.
- Silver - $38.25 – Up $0.04.
- Platinum - $1,769.00 – Up $2.00.
- Palladium - $779.40 – Down $6.60.