Mid Day Gold & Silver Market Report – 11/3/2011
Gold Prices Drift Slightly Higher in Morning Trading
Greek Prime Minister George Papandreou is backing away from his plan to require a referendum to accept the European Union bailout offer. Papandreou has received harsh criticism from the opposition party ever since his surprise announcement. There were reports that the prime minister was on his way out. His own party members were defecting and he had lost his majority. Papandreou’s softening on his stance regarding the referendum is viewed as a reaction to these very recent events. Equity and precious metals markets have reacted favorably to this turn of events. There is concern on how well the Greek populace will react to the austerity measures that will be required.
Italian Prime Minister Silvio Berlusconi is also under pressure to resign. Six former parliamentary loyalists are calling for a new government. The Italian cabinet continues to bicker and has not come up with a plan for economic reform. Berlusconi is not stepping down, but he will call for a confidence vote in the next 15 days. Italy’s economy is viewed as too big to fail, while quite possible being too big to bailout.
Back in the U.S., Freddie Mac is asking tax payers to come up with an additional $6 billion dollars, after suffering their worst quarterly loss this year. Freddie Mac has already received $72.2 billion in tax payer dollars since being taken over by the government in 2008.
At 12PM (CT) the APMEX precious metals prices were:
- Gold price - $1,766.60 – up $35.00
- Silver price - $34.56 – up 58 cents
- Platinum price - $1,647.50 – up $46.20
- Palladium price - $661.30 - up $10.60