Morning Gold & Silver Market Report – 7/29/2011
MAJOR DEBT CEILING VOTE CANCELLED, MEETING DEADLINE AN UNCERTAINTY
A vote on House Speaker John Boehner’s deficit-reducing debt ceiling deal was cancelled yesterday, after Boehner failed to garner enough support from his fellow Republicans. In any case, the Senate was prepared to vote down the bill, however from there the Senate was expected to work on a compromised plan. Senator Harry Reid’s plan was unlikely to garner any Republican support, so it is not considered to be significant at this time. Standard and Poor’s has reiterated that a credit rating downgrade is likely for the U.S., even if a debt ceiling deal is made before the August 2 deadline.
Moody’s Investor Services placed Spain on review for a possible downgrade in their credit rating. It appears that the bailout of Greece that was intended to stop any contagion to other eurozone countries has not worked as advertised. The euro fell amid the news, strengthening the dollar.
A consumer-spending report was released today, and showed slower-than-expected economic growth. Higher gas prices contributed to the low spending. Gross domestic product rose at a 1.3 percent annual rate, while first-quarter output was revised sharply. The original GDP estimate for the first quarter was 1.9 percent, and after the revision, it sits at just 0.4 percent. Gold and silver prices rose thanks to this report, and the metals are also being buoyed by the ever-thickening plot regarding the debt ceiling.
At 8:08 am (CT) the APMEX precious metals spot prices were:
- Gold - $1,626.10 – Up $10.90.
- Silver - $40.34 – Up $0.49.
- Platinum - $1,784.60 – Down $7.80.
- Palladium - $827.40 – Down $2.80.