Morning Gold & Silver Market Report – 9/9/2011
OBAMA’S SPEECH DRAWS MIXED REVIEWS; INVESTORS WANT ACTION, NOT WORDS
Precious metals were mixed in overnight trading, as they saw a bump before heading lower to where they are now. U.S. stock futures are also down, signaling a negative start for Wall Street trading this morning. All eyes were on President Barack Obama last night as he proposed the “American Jobs Act” in front of Congress. Estimated costs for this proposal exceeded expectations at $440 billion. While it sounds bold, strategists at KBC Bank in Brussels wrote, “Obama’s stimulus plan … could, if enacted, push expected 2012 growth up, but doubts remain on the attitude of the Republican House.”
While Obama is pushing for action stateside, the Group of Seven nations (G-7) are meeting in France for the first time since the promise was made to act to calm financial markets in Europe. Constance Hunter of Aladdin Capital Management LLP said of another global recession, “Europe’s fingerprints [will be] on it.” Hunter continued, “Europe is the real risk.” Niall Ferguson, a professor at Harvard University, said recently, “The possibility of a European Lehman Brothers should keep us all awake at night … [Today’s conditions] remind one of the fall of 2008.”
The Managing Director of the International Monetary Fund, Christine Lagarde, said this morning that “a dangerous new phase” is upon the global economy. She called for governments to “act now” to stop contagion from spreading, and said, “Policymakers should stand ready, as needed, to take more action to support the recovery, including through unconventional measures.”
At 8:00 am (CT) the APMEX precious metals spot prices were:
- Gold - $1,848.60 – Down $10.90.
- Silver - $41.84 – Down $0.77.
- Platinum - $1,842.80 – Down $12.70.
- Palladium - $748.90 – Down $16.40.