Morning Gold & Silver Market Report – 8/3/2011
TWO RATINGS AGENCIES KEEP U.S. AT AAA RATING WITH WARNINGS
Credit ratings agencies Moody’s and Fitch have said that the U.S. sovereign debt rating will remain unchanged, but both companies said that a downgrade could still come in the future. Moody’s placed the U.S. rating on a negative outlook, and gave warnings as to what would cause a downgrade. One of the potential reasons for downgrade would be a “weakening in fiscal discipline in the coming year,” which is similar to Fitch’s warning of a downgrade if “fundamental weakness” in the economy is not corrected.
In a bit of ‘good news, bad news’ for the economy, the ADP private-sector jobs report was released this morning and showed an increase of 114,000 in July. The better-than-expected report was tempered by news that June’s gain was revised down to 145,000. This pushed stock futures up, but has had little impact on gold and silver, which have not moved much since it was released. Gold hit a record high over $1,675 overnight as the economic woes in the U.S. and Europe spurred safe-haven demand for the metal.
At 8:15 am (CT) the APMEX precious metals spot prices were:
- Gold - $1,669.40 – Up $25.90.
- Silver - $41.20 – Up $1.05.
- Platinum - $1,787.40 – Down $6.10.
- Palladium - $811.80 – Down $17.10.