Morning Gold & Silver Market Report – 10/31/2011
JAPANESE INTERVENTION MEANS STRONGER DOLLAR, LOWER METALS
In overnight trading, precious metals were down and stock futures are pointing towards a similar start for Wall Street. The U.S. dollar is stronger, thanks to the Japanese government intervening in the market in an attempt to curb the yen’s appreciation. A stronger yen hurts the export-based economy, and the country is still trying to recover from the catastrophic earthquake and tsunami that occurred earlier this year. Analysts from Commerzbank noted, “Gold and other precious metals are being knocked this morning by profit-taking and the strong U.S. dollar.”
A summit of the Group of 20 (G-20) leaders is on tap this week, and they have much to discuss. The agenda for the summit includes the euro zone debt crisis and the recent agreement on bank recapitalization, as well as a number of other topics. Regarding “economic imbalances that must be fixed,” the letter cites “undervalued exchange rates in key emerging surplus economies and insufficient domestic savings in some advanced economies,” without naming any countries in question.
NATO’s involvement in the Libyan revolution has officially ended after seven months of support. This is yet another sign that the revolution is nearly complete. It has been called “one of the most successful” operations in NATO’s history, and NATO Secretary-General Anders Fogh Rasmussen will visit and meet with Libya’s National Transitional Council (NTC) today. The NTC expressed a desire for further NATO support post-war, but Rasmussen stuck to the decision to end involvement.
At 8:04 am (CT) the APMEX precious metals spot prices were:
- Gold - $1,723.90 – Down $25.30.
- Silver - $34.34 – Down $0.99.
- Platinum - $1,615.70 – Down $36.10.
- Palladium - $655.50 – Down $14.80.