Morning Gold & Silver Market Report – 7/21/2011
GREEK BAILOUT INCLUDES DEFAULT?
The meeting between German Chancellor Angela Merkel and French President Nicolas Sarkozy brought about a “common position” regarding a second bailout for Greece. European Union leaders meet today to discuss the matter further. The euro has bounced all over the place since the news came out. Initially, it was higher, but then it tanked when Luxembourg Prime Minister Jean-Claude Juncker said that a selective default is possibly part of the plan. It has since rebounded from those losses. Gold has remained steady at or just below $1,600 this morning, while silver is holding at or just below $40.
President Obama’s previously firm position on not allowing a short-term debt ceiling deal seems to be loosening. However, he is only open to such a deal if a larger deal was reached but needed more time to pass. The August 2 deadline is rapidly approaching, and even the Federal Reserve is making plans in case the U.S. defaults on its debt. Fitch ratings said that it will decide in August whether the U.S. will keep a stable outlook on its top-notch AAA credit rating. Most people remain optimistic that a deal will be reached, however even if a deal is reached, downgrades could happen.
At 8:00 am (CT) the APMEX precious metals spot prices were:
- Gold – $1,598.70 – Up $0.80.
- Silver – $39.88 – Up $0.28.
- Platinum – $1,782.70 – Up $6.60.
- Palladium - $801.10 – Up $5.50.