Closing Gold & Silver Market Report – 11/3/2011
Could Gold Be in for a Record Rally?
A story in Bloomberg by Debarati Roy, indicates that gold could be headed to record prices by March, according to those with the most accurate record of forecasting gold prices. These forecasts are driven by a stagnating global economy and a long drawn out European debt crisis. Futures contracts may rise by 12% to $1950 per oz by the end of the first quarter using median estimates compiled by Bloomberg. These forecasts come from 8 of the top 10 analysts tracked by Bloomberg over the past eight quarters. “There is a loss of trust in the entire financial system and urgent need for safe-haven investment,” said Ronald Stoeferle at Erste Group Bank AG in Vienna, the second most- accurate forecaster in the past three months. “The environment for gold is just perfect.”
If you are frustrated trying to determine whether Greece is going to accept a bailout or not, you are not alone. The European Financial Stability Facility (EFSF), the euro zone’s temporary rescue fund, is clearly frustrated as well. The EFSF was set to issue a $4.1 billion dollars offering, but will now wait until at least next week. A fund spokesman said there is just too much volatility and uncertainty surrounding Greece. There needs to be some conclusion as to whether there will be a bailout or not.
At 4PM (CT) the APMEX precious metals prices were:
- Gold price - $1,766.60 – up $35.00
- Silver price - $34.57 – up 59 cents
- Platinum price - $1,641.20 – up $39.90
- Palladium price - $659.80 – up $9.20