Mid-Day Gold & Silver Market Report – 7/19/2011
GOLD STAYS ABOVE $1,600 AS U.S. STOCKS RISE
Stocks in the U.S. have risen today based on both positive earnings results from a number of companies and an unexpected six month high in housing-market data. However, the market news wasn’t entirely sunny as Goldman Sachs Group Inc’s earnings were far lower than expected and Bank of America posted a loss of $8.8 billion, which is its largest quarterly loss ever. After a weeklong rally of over 4.5%, gold is trading with only minor losses (though still above $1,600) as investors readjust their portfolios and sell-off their gains.
There’s a vote scheduled today in the House of Representatives on a Republican measure that would allow the debt limit to be increased only if significant spending cuts take place prior to the increase. The measure would also amend the U.S. Constitution to require the government to have a balanced federal budget moving forward into the future. However, even if the measure passes the Republican-led Congress, it is not likely to make its way through the Democratically-controlled Senate, with President Obama threatening a veto even if it did.
German Chancellor Angela Merkel is warning that the upcoming summit between European Union leaders on July 21 won’t result in a quick fix for the fiscal crisis currently plaguing Europe, saying “It’s entirely about creating a controlled, composed process of gradual steps and measures.” Members of the EU are struggling with other member countries and with officials from the European Central Bank to come to a consensus on how to stop the debt problems currently affecting Greece from spreading to other European nations.
At 12:00 pm (CT) the APMEX precious metals spot prices were:
- Gold – $1,602.50 – Down $0.90 on the day.
- Silver – $40.32 – Down $0.08.
- Platinum – $1,777.00 – Up $1.60.
- Palladium - $799.50 – Down $2.90.