Morning Gold & Silver Market Report – 9/1/2011
JOBLESS CLAIMS MIXED; LAGARDE SHOWS BACKBONE
U.S. stock futures are pointing to a low start for Wall Street this morning, after a night of mixed trading that now has precious metals mostly flat. Losses in stock futures were pared after the weekly jobless claims report showed a drop of 12,000 claims from last week. However, the four-week moving average climbed by 1,750 claims, and is thought to be a better indicator of trends. Investors now await a key manufacturing report due later this morning, and expectations are that this index will dip below 50%, meaning manufacturing activity contracted.
European Central Bank policymaker Jeurgen Stark said recently, “The [debt] crisis is not over. Not just in Europe is it not over, it is also not over in other regions of the world.” He also says that the U.S. has an “enormous” debt problem, and that the fundamentals are lacking that would help correct the issue.
When Christine Lagarde was named International Monetary Fund chief, many critics felt she would not be tough on her former peers in Europe. Those fears were squashed as she stated that European banks should be recapitalized by force. The European banking system as a whole is being called in to question, as Jacob Kirkegaard of the Peterson Institute for International Economics claims. “Markets fundamentally don’t believe that many of Europe’s banks hold enough capital,” he said. “They thus question the solidity of the entire European banking system.”
At 8:06 am (CT) the APMEX precious metals spot prices were:
- Gold - $1,830.50 – down $3.20.
- Silver - $41.78 – down $0.06.
- Platinum - $1,848.00 – down $9.20.
- Palladium - $779.70 – down $10.80.