Morning Gold & Silver Market Report – 8/1/2011
CONGRESS TO VOTE ON DEBT CEILING DEAL
President Barack Obama and congressional leaders came to an agreement on a deal to raise the U.S. debt ceiling over the weekend. The deal still has to pass the House of Representatives and the Senate to take effect, and a vote is expected later today. For now, attention is focused on whether the deal will be enough to avert a downgrade of the top-notch AAA credit rating the country holds.
The agreement raises the debt ceiling by a maximum of $2.4 trillion (in two stages), while also including spending cuts that top out at $2.4 trillion as well. Ratings agency Standard & Poor’s had said previously that a reduction of spending of $4 trillion would likely maintain the AAA rating.
The Markets have reacted to the news with optimism, as U.S. stock futures are up (signaling gains when Wall Street opens) along with European and Asian stocks. Gold is trading lower on the news, coming off a record high as investors’ risk appetite grew amid the optimism regarding the debt ceiling.
At 8:00 am (CT) the APMEX precious metals spot prices were:
- Gold - $1,619.80 – Down $10.40.
- Silver - $39.36 – Down $0.81.
- Platinum - $1,800.50 – Up $15.20.
- Palladium - $848.10 – Up $18.40.