Mid-Day Gold & Silver Market Report – 10/24/2011
ROUBINI GIVES 50/50 FOR RECESSION
Precious metals have stayed relatively steady since this morning. News coming out of Europe is quiet today, and it seems investors are in wait-and-see mode. Nouriel Roubini, Co-Founder and Chairman of Roubini Global Economics LLC., seems to think the worst is not over. “Unfortunately, in my view there is a risk, at least a 50 percent probability, that in the U.S., in the eurozone, in the United Kingdom, and in most advanced economies, the future in the next 12 months might suggest a recession, a downturn, rather than reacceleration of growth,” says Roubini.
It seems Roubini may be right about the lack of stability as there is a strong chance of the U.S. being hit with another downgrade, this time from either Moody’s or Fitch. Ethan Harris, Merrill’s North American Economist, writes in a report, “The credit rating agencies have strongly suggested that further rating cuts are likely if Congress does not come up with a credible long-run plan” to cut the deficit. He goes so far as to say, Hence, we expect at least one credit downgrade in late November or early December when the super committee crashes. In addition, Germany expects the bailout fund for the euro zone will be leveraged at more than 1 trillion euros in order to help prevent any more of the region’s debt crisis from overwhelming Italy and Spain.
Also, the U.S. and North Korea have attempted to get back on better terms with each other for fear that the continued silence may lead to miscalculation or provocations from North Korea. Mark Toner, Deputy State Department spokesman, referred to the meetings as “exploratory” in nature and adds, “We are not seeking to have talks for talks’ sake…[It’s] safe to say we are looking for concrete actions,” by North Korea before continuing their talks, which had ceased since 2008.
At 12:00 pm (CT) the APMEX precious metals spot prices were:
- Gold price - $1,652.40 – up $14.30
- Silver price - $31.61 – up $.38
- Platinum price - $1,541.90 – up $32.70
- Palladium price - $639.20– up $18.90