Morning Gold & Silver Market Report – 7/28/2011
DEBT CEILING VOTES TODAY; JOBLESS CLAIMS DROP
House Speaker John Boehner’s reworked debt-ceiling deal is expected to pass when representatives vote later today. It is, however, expected to find resistance in the Senate, as Democrats have spoken out against it. Senate Majority Leader Harry Reid is gathering support for his reworked plan as well. The two programs are fairly similar in most parts, with the main difference being how much the deficit will be reduced. Boehner’s plan reduces the deficit by less than $1 trillion over ten years, while Reid’s plan reduces the deficit by $2.2 trillion over ten years. We are only five days away from the U.S. being unable to pay its interest payments.
The weekly jobless claims report was released this morning, and showed a better-than-expected drop to below 400,000. The four-week moving average, which is typically a more accurate gauge of trends, also fell to 413,750. Both levels are the lowest since April. Stock futures climbed after the release of the report. Gold is relatively flat and silver is trading lower this morning amid a rising dollar.
At 8:00 am (CT) the APMEX precious metals spot prices were:
- Gold - $1,616.80 – Up $0.70.
- Silver - $40.18 – Down $0.45.
- Platinum - $1,791.80 – Down $16.20.
- Palladium - $831.50 – Down $3.70.