Mid-Day Gold & Silver Market Report – 10/28/2011
EU FEARS STILL PRESENT, DEBT FOCUS SHIFTS TO U.S.
Precious metals prices have remained relatively steady since the Morning Gold & Silver Market Report. There seems to be an overall lack of optimism of the euro zone debt deal. In addition, the super committee tasked with solving the U.S. deficit problem seems to be unable to come to a resolution. According to TheMarketTrendForecast.com’s Chief Investment Strategist, David Banister, "I think what we will see near-term is a rally up in the $1,775 level [for gold], a little bit of consolidation and then we move up into the $1,800s…There's absolutely a big debt problem that is not resolved overseas in Europe ... you really can't put out a fire with more paper ... but eventually this is going to flame back up again come early spring/late winter."
Speaker of the House John Boehner, a Republican, and House Democratic leader, Nancy Pelosi, actually share the same views on the deficit-reduction issue. In an interview with reporters, the latter went on record saying, "Knowing how important this agreement is, the message that it will send to the world, to the markets, to the American people (and) the confidence it will build -- it will be a missed opportunity if we do not do this … It behooves all of us to be open as possible."
However, even with a plan in place to help contain the euro zone debt crisis, naysayers are already coming out of the woodwork saying the measures taken are short term at best and expect doubts to return. “The very best you can hope for is it buys you time,” said Jonathan Loynes, Capital Economics’s Chief European Economist. “It avoids an imminent catastrophe and means Greece should be able to meet its obligations in the near future, and it may restore a bit of confidence. But it won’t prevent the debt crisis overall from rambling on and indeed escalating.” Greek Prime Minister George Papandreou came out in support of the plan as well, saying, “The crisis gives us the opportunity and this agreement gives us time … We negotiated and managed to erase a very important part of our debt. Tens of billions of euros have been lifted from the backs of the Greek people.”
At 12:00 PM (CT) the APMEX precious metals spot prices were:
- Gold - $1,746.40 – Down $3.30.
- Silver - $35.10 – Down $0.05.
- Platinum - $1,649.90 – Up $8.50.
- Palladium - $670.10 – Down $2.40.