Morning Gold & Silver Market Report – 12/5/2011
GERMAN, FRENCH LEADERS TO ATTEMPT TO SOLVE EURO PUZZLE
The Gold price is dipping this morning as U.S. stock futures rise amid optimism regarding a resolution to the eurozone debt crisis. The focus mainly has remained on Europe recently, and this week looks to be no different, with a European Union summit on tap Friday. Rockwell Global Capital’s Peter Cardillo said, “The (stock) rally continues, but it’s all about Europe and any disappointing news out of Europe later in the week could mean an about-face for this market.”
French President Nicolas Sarkozy and German Chancellor Angela Merkel are under fire to agree on a “master plan” regarding the budget for the eurozone. The leaders of the top two economies of the EU will be meeting all week ahead of Friday’s summit. Patrice Perois of Kepler Capital Markets said, “There are still significant differences between Sarkozy and Merkel, so we’re in for a volatile week, and the risk is that any kind of disappointment could trigger a pullback.”
In a note from Commerzbank, analysts wrote, “The Gold market this week will be shaped by the many political meetings due to take place, which are likely to focus on the sovereign debt crisis. Friday’s European Union summit is the most important meeting over the next few days, though we can expect a long wait before a permanent solution to the crisis is found.” Regarding news of the European Central Bank being expected to cut interest rates, the analysts added, “This should lend support to the Gold price, since the opportunity costs of holding Gold will remain low.”
At 8 a.m. (CST), the APMEX precious metals spot prices were:
- Gold - $1,736.20 – Down $12.90.
- Silver - $32.72 – Up $0.04.
- Platinum - $1,542.00 – Down $7.50.
- Palladium - $646.50 – Up $0.70.