Closing Gold & Silver Market Report – 11/30/2011
GOLD REACHES TWO-WEEK HIGH; S&P SEES SHIFT IN ASIA’S FAVOR
Prices for Gold, Silver, Platinum, and Palladium all ended up for the day, with Gold reaching a two-week high and gaining for a third straight session. Gold’s boost comes from investors encouraged by plans from central banks around the world to cut costs on borrowing to improve financial liquidity.
According to Standard & Poor’s (S&P), the credit downgrade of six major financial institutions here in the U.S. and the contrasting upgrades of banks in China reflect a shift in the global banking landscape in Asia’s favor. Ritesh Maheshwari, S&P’s lead analytical manager of financial services ratings across the Asia-Pacific region, said, “Money is flowing into emerging markets, so the health of their financial systems is continuously improving, whereas in the West, banks are battling with so many issues.” S&P’s view is that banks in North America and Europe find themselves in greater danger of turmoil in the financial market, while Asia-Pacific banks have experienced relative stability.
With eurozone finance ministers still meeting to discuss possible solutions to Europe’s debt crisis, Economic and Monetary Affairs Commissioner Olli Rehn is warning that “we are now entering the critical period of 10 days to complete and conclude the crisis response of the European Union.” Although ministers did reach an agreement Wednesday to use the European Financial Stability Facility (EFSF) bailout fund in a more aggressive manner, markets have not responded optimistically. Meanwhile, bond yields in Spain and Italy began to raise again toward levels considered unsustainable today, and stocks and the euro lost ground in the wake of S&P’s credit downgrade of several major banks.
At 4:15 p.m. (CST), the APMEX precious metals spot prices were:
- Gold - $1,751.00 - Up $34.10.
- Silver - $32.86 - Up $0.92.
- Platinum - $1,564.10 - Up $22.40.
- Palladium - $613.00 - Up $28.80.