Closing Gold & Silver Market Report – 11/8/2011
The price of Gold peaked briefly above $1,800 before short-term profit taking took prices quickly lower. Silver prices quickly rose about the same time but also dropped after peaking at $35.35.
“The daily battle is headlines from Europe (and) short-term profit taking, which keeps gold’s progression higher in check,” said Jeff Wright, managing director at Global Hunter Securities. Among the other positive factors for gold prices, Wright lists the budget crisis in the U.S., devaluation of the dollar, and the fact that gold prices are above the 50-day moving average. Wright added, “The solutions to Greece (and) Italy are all inflationary in nature; inflation is supportive of gold as it erodes the value of currencies.”
Italian Prime Minister Silvio Berlusconi has stated that he will give into pressure to resign if the Italian parliament approves austerity measures in next week’s vote on the measure. Italian President Giorgio Napolitano said, “Once that task has been achieved, the prime minister will tender his resignation to the president.” Several members of the prime minister’s party have defected to leave him without a majority in parliament. Even with Berlusconi’s resignation, Italy’s problems will prove to be a tough fix. Mario Baldassarri, chairman of the Senate Finance Committee, said, “The key political point for Italy is now answering the following question: Which government, with what wide majority, will be able to implement in a few days the structural reforms that we haven’t been able to implement in the last 10 years?”
At 4:15 p.m. (CST), the APMEX precious metals spot prices were:
- Gold - $1,789.20 – Down $3.90.
- Silver - $34.97 – Up $0.11.
- Platinum - $1,662.50 – Up $4.50.
- Palladium - $673.00 – Up $9.10.