Mid-Day Gold & Silver Market Report – 7/22/2011
AMERICANS BACK COMPROMISE; GREEK DEFAULT?
The debt ceiling talks continue to be a source of concern for the American public. President Obama is looking for a large cut in the deficit (trillions of dollars) while lifting the debt ceiling. The sticking point is the belief that in order to accommodate these parameters, taxes would need to be raised. The interesting news here is that most Americans now favor a bipartisan compromise, while still being generally dissatisfied with the process. Earlier today during one proposal presented on the Senate floor, Senate Democratic leader Harry Reid went so far as to say, “I say to both the president and to the speaker here on the Senate floor, representing my Democrats, and I'm confident many Republicans: Be very careful…Show a lot of caution as this negotiation goes forward because any arrangement must be fair to all America, not just the wealthy."
The news out of Europe continues to revolve around the debt crisis in Greece. Kathy Lien, director of global research and analysis for GFT said, “Fitch became the first rating agency to assign a restricted default rating, which almost immediately stripped the euro of its earlier gains.” However, David Riley, head of sovereign ratings for Fitch, said this about the euro zone leaders’ commitments: they “represent an important and positive step towards securing financial stability in the euro zone.” He also added that “the reduction in interest rates and extension of maturities potentially offers Greece a window of opportunity to regain solvency, despite the formidable challenges that it faces.”
At 12:00 pm (CT) the APMEX precious metals spot prices were:
- Gold – $1,601.90 – Up $14.00.
- Silver – $40.08 – Up $1.07.
- Platinum – $1,796.50 – Up $8.70.
- Palladium – $808.80 – Down $2.20.