Closing Gold & Silver Market Report – 9/9/2011
UNEASINESS IN EUROZONE BUOYS GOLD
Precious metals have remained relatively flat this afternoon, while stocks tumbled along with the euro. The dollar strengthened throughout the day, but its normal negative correlation to gold didn’t force the yellow metal down. This is likely thanks to the uneasiness in the eurozone. As James Dunigan, CIO of PNC Wealth Management, explains, “There’s that nagging thought that we can continue to have a downward spiral in Europe. There’s concern of a default, of risk in banks, of a liquidity crisis. In the U.S., even as President Obama made an effort to put that [jobs] plan together, there’s not a whole lot of confidence that Congress will pass.”
President Obama began a campaign to promote his jobs proposal, and said that he expects Congress to pass it next week. Harm Bandholz of UniCredit said regarding the proposal, “There is at least a chance that Congress will approve the bill.” Later this month, Obama is expected to outline steps towards cutting $2 trillion over the next ten years, including tweaks to Medicare and Medicaid, Social Security, tax cuts, and spending cuts.
At 4:00 pm (CT) the APMEX precious metals spot prices were:
- Gold - $1,860.20 – Up $0.70.
- Silver - $41.59 – Down $1.01.
- Platinum - $1,837.80 – Down $17.70.
- Palladium - $739.20 – Down $26.10.