Mid-Day Gold & Silver Market Report – 12/1/2011
SUPER COMMITTEE WORK MIGHT RESUME
The Gold price is down marginally since the Morning Gold & Silver Report, with the continued confusion on what is actually happening in the European debt crisis. In an interview with Money & Investing Editor Jonathan Burton from Market Watch, Adrian Day, president of investment firm Adrian Day Asset Management, reflected on reasons why people have been buying Gold the past two years, citing “concern and distress of fiat currency paper money.” Day said, “Gold is a solid asset which is going up.”
The agreement of major central banks to come to Europe’s aid possibly could backfire and pose a risk to U.S. economic expansion. James Bullard, president of the Federal Reserve Bank of St. Louis, said, “I think we can grow somewhat stronger in 2012 than we have in the second half of 2011. The real question is what is this tail risk in Europe and how big is this tail risk coming from Europe.”
The congressional Super Committee might get back to work to try to cut the deficit. House Minority Whip Steny Hoyer told CNBC that he would like a 90-day extension for the Super Committee to reach an agreement. Speaking of the Super Committee’s work to this point, the Maryland Democrat said, “That was a balanced package. All of it would have caused pain and discomfort politically and in real terms to people. … But that's what we have to pursue if we want to get back to a sustainable path. We’re going to continue to work,” he said of the full Congress. “We’re going to continue to focus and continue to get it done and work on it over the coming months and not wait simply for the next election because, frankly, there’s always a next election. We cannot wait.”
At 12:08 p.m. (CST), the APMEX precious metals spot prices were:
- Gold - $1,736.40 – Down $11.90.
- Silver – $32.70 – Down $0.09.
- Platinum - $1,558.50 – Down $3.30.
- Palladium - $629.40 – Up $16.80.