Mid-Day Gold & Silver Market Report – 8/15/2011
ECB BUYS BONDS
The European Central Bank announced that last week it began buying Italian and Spanish securities. According to Christoph Rieger, head of fixed-income strategy at Commerzbank AG in Frankfurt, “The market optimists will interpret this number as good news as it underscores the ECB’s resolve…Equally, the pessimists will point out that it is bad news as it shows how much money the ECB had to commit for the yield compression seen.” This came about primarily due to a failure of politicians to convince investors that the debt crisis could be contained.
In world news, Libyan rebels have announced they have basically cut off Muammar Gaddafi’s two main supply routes. This is the rebels’ boldest advance since the uprising began. Rebels lack the manpower for an assault on Tripoli but are hopeful their news will inspire an uprising or a total surrender of power. Also, Pakistan gave China access to the “stealth” helicopter during the Osama Bin Laden raid, even though they were told implicitly to not allow that to happen. Pakistan is an ally in the region to the United States, but they are upset over the raid and view China a bit more favorably.
At 1:15 PM (CT) the APMEX precious metal prices were:
- Gold price - $1,769.00 – up $24.40.
- Silver price - $39.69 – up $0.47.
- Platinum price - $1,800.40 – up $3.70.
- Palladium price - $749.70 – down $0.50.