Closing Gold & Silver Market Report – 10/27/2011
STOCKS POST MASSIVE GAINS ON NEWS OF EURO ZONE DEAL
Precious metals are up slightly since the mid-day commentary, pushed by a weaker dollar and euro. However, stocks were the real news makers today, with the S&P 500 gaining 3.43% as it pushes toward its biggest monthly rally in almost 4 decades.
However, consumer confidence has fallen to its lowest level since April 2009. 95% of participants in the survey had a negative view of the economy, and all three components of the survey showed declines. “Consumer sentiment remains mired knee-deep in the big muddy of an epic housing mess, household deleveraging and a broken labor market,” said Joseph Brusuelas, Senior Economist for Bloomberg.
Lawmakers may be becoming complacent in their efforts to close the federal spending gap, as Reuters reported today that many lawmakers do not think another credit rating downgrade could affect the economy. Congressman Michael Grimm said, “There have been some that think we can absorb another [downgrade] and they hide behind the fact that the credibility of the ratings agencies has been called into question.” The attitude that the United States is the “cleanest dirty shirt” may cause paralysis in a congress that is divided on such a hot-button issue.
At 4:06 pm (CT) the APMEX precious metals spot prices were:
- Gold - $1,748.90 – Up $23.40.
- Silver - $35.14 – Up $1.79.
- Platinum - $1,638.60 – Up $41.40.
- Palladium - $669.50 – Up $21.40.