Mid-Day Gold & Silver Market Report – 7/25/2011
WORLD WATCHING DEBT CEILING TALKS
Worldwide financial leaders remain hopeful and secure that U.S. lawmakers will come through on their debt impasse compromise. The majority of countries believe the U.S. will come to an agreement, but view the combination of a raise to the debt ceiling and a ‘wait and see approach’ to balancing the budget to accommodate that increase as still potentially negative. An Indian official said, "If you look at the world markets, they are jittery though they have not nose-dived." Australian Treasurer Wayne Swan had this to say about a lingering debt ceiling debate, "With the global recovery and confidence still fragile, it's in everyone's interests that U.S. policymakers work toward a speedy resolution."
In Hong Kong earlier today, Secretary of State Hillary Clinton spoke to Chinese investors. She spoke reassuringly that “political wrangling” is a part of democratic problem-solving and said that the U.S. is working towards resolving the disagreements and improving the country’s long-term fiscal outlook for the future. She also framed the debt debate as a sort of bump in the road.
The global financial worry today has investors running to safe-haven investments, like gold and other precious metals. UBS came out with a note to investors that said, "With little optimism on U.S. debt talks at the moment, the gold price acutely reflects investor nervousness that limited progress will be made before the Aug. 2 deadline…This nervousness is in many ways justified as the threat of a U.S. ratings downgrade is very real."
At 12:00 pm (CT) the APMEX precious metals spot prices were:
- Gold – $1,613.10 – Up $10.60.
- Silver – $40.27 – Up $0.09.
- Platinum – $1,794.00 – Down $4.40.
- Palladium - $811.30 – Up $2.90.