Mid-Day Gold & Silver Market Report – 10/27/2011
METALS UP ON WEAKER DOLLAR
Since the morning commentary, stocks have continued to rally on the news of the euro zone debt deal. The euro has followed, and has also brought gold and silver along with it. Kathy Lien of GFT said, “Investors around the world are cheering the fact that the Europeans have sucked it up and done what was necessary to mitigate a deeper crisis in the region.” Many analysts are warning that few details have been ironed out, and that the details regarding the write-down private bondholders are taking were light.
The U.S. dollar is down thanks to the euro’s rise, and gold’s negative correlation to the dollar may be what is pushing it higher today. Frank Lesh of FuturePath Trading said, “The dollar’s weakness and inflationary fears because of Europe’s actions are making people move towards gold.”
In the next step of negotiating a deficit reduction deal in the U.S., Republicans in Congress called for $2.2 trillion in cuts. They aim to significantly cut programs such as Medicare, Medicaid, and Social Security – programs that Democrats have previously not been willing to cut.
At 12:04 pm (CT) the APMEX precious metals spot prices were:
- Gold - $1,746.60 – Up $21.10.
- Silver - $35.26 – Up $1.91.
- Platinum - $1,642.90 – Up $45.70.
- Palladium - $673.40 – Up $25.40.