Morning Gold & Silver Market Report – 11/9/2011

Markets Plunge as Italian 10-year Bond Climbs Above 7%

Yesterday, many analysts said an Italian 10–year bond above 6% would be unsustainable. Today, the Italian 10-year bond has climbed well above the 7% benchmark that no analyst disputes as being unsustainable. The 7% threshold is the point at which institutional investors, large banks and sovereign nations decide the risk of default is too great for the potential 7% reward. Furthermore, once rates rise above this level, odds greatly decrease that they will come down. We saw this with Greece, Ireland and Portugal, and each was forced to request a bailout after crossing the 7% threshold. Italian Prime Minister Silvio Berlusconi has promised to resign if austerity measures are voted in. Rumors of his resignation drove markets up yesterday, but today the 10-year bond yield is front and center.

The Gold and Silver markets should be watched carefully today. As often occurs when the stock market is heading toward a significantly down day, Gold prices retreat as stock margin calls begin to come in. Gold prices flirted with $1,800 per ounce yesterday and then retreated overnight to below $1,785 on the news of the Italian bonds. This morning, Gold prices were climbing and appear that they could flirt with the $1,800 level today. Certainly, the perception will be that there is even greater risk in the market today than yesterday, and there likely will be a continuing movement toward risk-management assets such as Gold. Italy’s economy is so large, it may be too big to bailout. Jim Rogers, CEO of Rogers Holdings, told CNBC today that there is a 100% chance of a crisis worse than that of 2008.

At 8 a.m. (CST), the APMEX precious metal prices were:

  • Gold price - $1,801.80 - up 60 cents.
  • Silver price – 34.89 – down 31 cents.
  • Platinum price - $1,655.50 – down $17.60.
  • Palladium price - $667.60 - down $11.70.

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Disclaimer:

APMEX’s ‘News and Commentaries’ provide our readers with a review of spot price activity and some of the factors that may be affecting the market for precious metals, three times during the trading day. While the information is obtained from sources we believe to be reliable, we do not guarantee its accuracy or its completeness and we encourage you to conduct your own investigation prior to making any decision based on the information. The "News and Commentaries" are not intended as a comprehensive discussion and there may be other factors that may be affecting the financial marketplace. These "News and Commentaries" are provided for informational purposes only and do not constitute a recommendation by APMEX to hold, to purchase or to sell any precious metal product. All orders, all purchases and all sales, if any, are subject to the terms of the User Agreement and other applicable policies.

US Dollar Prices are in USD

Precious Metal Prices
4/17/2014 5:15:48 PM EST

Metal Bid Ask Change
Gold $1,294.60 $1,296.60 ($8.90)
Silver $19.60 $19.70 $0.02
Platinum $1,405.70 $1,415.70 ($22.10)
Palladium $792.10 $797.10 ($6.20)
4/17/2014 5:15:48 PM EST

Click here for Historical Charts*All Charts are in USD


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