Morning Gold & Silver Market Report – 7/25/2011
GOLD, U.S. DOLLAR HIT NEW RECORDS ON DIFFERENT ENDS
Gold spot price set an all-time record overnight, reaching $1,624.07 before settling back somewhat in morning trading. U.S. lawmakers had signaled that an agreement on the debt ceiling deal would be forthcoming before the opening of the Asian markets, but as it stands right now, the two sides seem as far apart as ever. Dominick Schnider, director for wealth management research at UBS AG, said, “It’s probably going to get solved at the really last end, but it probably does not matter. People are now becoming so aware of the ballooning debt in the developed world, there’s a risk the U.S. still sees a rating downgrade.” Schnider also stated the price of gold could go to $1,800 by year’s end.
The U.S. dollar hit record lows versus the Swiss franc as financial markets remain unsettled over the U.S. inability to raise the debt ceiling. At this time, the Swiss franc is widely considered to be the world’s most stable currency, which may be partially attributed to the fact that they own much more gold as a percentage of their GDP than all other developed nations.
Moody’s has cut Greece’s credit rating by another three levels, on concerns that the European Union’s rescue plan for the country will cause substantial losses to investors and thus amount to a default. “The combination of the announced EU program and the debt exchange proposals by major financial institutions imply that private creditors will experience substantial losses on their holding of Greek government bonds and this is something we need to reflect in the rating,” Moody’s senior analyst Sarah Carlson said in an interview.
At 7:39 am (CT) the APMEX precious metals spot prices were:
- Gold – $1,617.70 – Up $15.20.
- Silver – $40.57 – Up $0.39.
- Platinum – $1,795.70 – Down $2.70.
- Palladium - $807.50 – Down $1.00.