Mid-Day Gold & Silver Market Report – 7/29/2011
CAN U.S. CONGRESS COMPROMISE? WORLD AWAITS
Bipartisan efforts are increasing today, with a vote on John Boehner’s revised plan expected to take place later today. There was concern there would not be enough votes to pass the previous edition yesterday afternoon. John Boehner’s plan is up for consideration, as is a proposal from Harry Reid. It’s a true scramble for support trying to get the votes needed to support either plan at this point. Senator Reid has been in talks with Treasury Secretary Tim Geithner about possible inaction, but that “the international community is extremely worried,” based on that conversation.
The other point of concern has to do with Commerce Department data that shows any economic growth we were experiencing actually started to wane late last year, not this year as a number of economists’ data implied. Previous reports had the economic growth at 1.9% during the second quarter, but in actuality it only grew 1.3%. According to Ryan Sweet, a senior economist at Moody’s Analytics in West Chester Pennsylvania, "The economy essentially came to a grinding halt in the first half of this year…We did get side-swiped by some temporary factors which are fading, but it raises some concerns about the sustainability the recovery."
Based on debt ceiling fears and weaker than expected Gross Domestic Product data, gold has hit another all-time high. This is the third record within the last 5 days. Mark Luschini, Chief Investment Strategist of Janney Montgomery Scott, says, "The weak economic data suggests that you may see some form of stimulus, certainly highly accommodative monetary policies, and that will continue to put a bid on gold prices… As long as there is no re-normalization of a steady state of economic or fiscal circumstances, gold will move higher."
At 12:00 pm (CT) the APMEX precious metals spot prices were:
- Gold - $1,624.80 – Up $9.60.
- Silver - $39.98 – Up $0.13.
- Platinum - $1,786.90 – Down $5.50.
- Palladium - $829.10 – Down $1.00.