Morning Gold & Silver Market Report – 7/20/2011
OPTIMISM ABOUNDS OVER DEBT CEILING, EUROZONE TALKS
U.S. stock futures are trading higher and gold is down this morning thanks to renewed optimism regarding debt ceiling negotiations. On an unrelated note, the “cut, cap, and balance” plan was passed by the House yesterday, but President Obama has already said he would veto this bill. To the President, the more relevant plan is the “Gang of Six” plan that was drafted yesterday, which would see cuts of $3.7 trillion over the next ten years.
French President Nicolas Sarkozy will meet with German Chancellor Angela Merkel today to discuss the debt crisis in the eurozone. News of the meeting is also sparking optimism as these representatives from the two largest economies in the eurozone are attempting to find common ground before tomorrow’s European summit. Greek Prime Minister George Papandreou called tomorrow’s summit a “make-or-break moment” for the eurozone.
Optimism is also the word in Libya, as rebels say they have surrounded the eastern oil town of Brega and could be close to capturing it. This would be a major step in their attempts to overthrow Muammar Gaddafi. Fighting continues in Yemen, where the opposition has set up a council to lead efforts to oust President Saleh. This situation is very similar to the one in Syria, where opposition forces formed their own council to oust President Assad.
At 8:00 am (CT) the APMEX precious metals spot prices were:
- Gold – $1,584.00 – Down $18.10 on the day.
- Silver – $38.51 – Down $1.78.
- Platinum – $1,765.90 – Down $10.40.
- Palladium - $790.00 – Down $10.30.