Closing Gold & Silver Market Report – 11/7/2011
PRECIOUS METALS END THE DAY UP; CONCERN GROWS FOR ITALY
Prices of precious metals have continued to rise since the Midday Gold & Silver Market Report, spurred on by anxiety over the debt crisis in the euro zone and by reports that a call to use German gold reserves to “shore up” the euro zone’s rescue fund had been rejected by Germany. Gold was trading at more than 2% higher than Friday’s close. Brien Lundin, the Gold Newsletter’s editor, said, “The reports that German gold reserves will be untouchable in any rescue plan certainly gave gold a big boost today. I don’t believe this was a widely considered risk factor for gold, but the vote of confidence added more momentum to the metal’s recent positive trend.” Silver, platinum, and palladium also ended the day with gains.
Focus turned from Greece to Italy today as that country found itself regarded as the primary threat to euro zone stability. Political uncertainty in Italy caused government bond yields to soar near levels considered unsustainable. In response, European governments took action to prevent debt contagion and to soothe nervous markets. Greek leaders (including outgoing Prime Minister George Papandreou) hurried to put an interim government in place to implement a new bailout program to save Greece from an imminent default. In addition to France’s pre-emptive austerity measures, finance ministers for the euro zone agreed to ramp up a rescue fund to shield those countries perceived as vulnerable (such as Spain and Italy) from any default by Greece.
With Wall Street keeping eyes on Europe, U.S. stocks saw a moderate increase. The NASDAQ Composite rose 3.11 points, the Dow rose 46.66 points, and the S&P 500 rose 4.1 points. Regarding the turmoil in Europe, Paul Nolte, managing director at Dearborn Partners, said, “From confidence votes in Greece to threats of being kicked from the Union, European drama remains as captivating as any of the ‘reality’ shows on television.”
At 4:01 p.m. (CST), the APMEX precious metals spot prices were:
· Gold -- $1,798.30 - Up $40.20.
· Silver -- $35.02 - Up $0.90.
· Platinum -- $1,661.00 - Up $31.70.
· Palladium -- $664.00 - Up $6.70.