Closing Gold & Silver Market Report – 12/5/2011
S&P PLACES EUROZONE ON NOTICE; RUSSIANS PROTEST ELECTION
The price of Gold fell for the day on technical selling. “We have seen Gold moving along in tandem with equities. However, it is way too early to say that Gold will lose its safe-haven status …,” said David Meger, director of metals trading at Vision Financial Markets. The prices are still correlated to what is going on in Europe. The other shocking piece of information is international concern over potential voter fraud in Russia.
Standard & Poor’s (S&P) has come out with some very harsh wording in its most recent credit rating review for the eurozone. This comes on the heels of German Chancellor Angela Merkel and French President Nicolas Sarkozy pushing for a treaty rewrite to tighten economic cooperation. Fifteen countries are on warning for downgrade, and France and Germany have had their AAA credit rating downgraded. “Systemic stress in the eurozone has risen in recent weeks and reached such a level that a review of all eurozone sovereign ratings is warranted,” S&P said in a statement. Another shocking performance issue to keep in mind is Germany’s bond performance, which has slipped below the U.S. Treasuries for the first time since 2009.
Another alarming development is perceived voter fraud surrounding Russian Prime Minister Vladimir Putin, who has gone on the defensive. Recent elections gave Putin a majority of power within political system, which seemed unlikely to most Russians. “Ballot box stuffing” seems to be the main issue, and a number of Russians demonstrated over Putin’s overwhelming influence on Russian politics. The United States has “serious concerns” over how the election was conducted. Communist Party leader Gennady Zyuganov said, “The country has never seen such a dirty election.” He dismissed the official results as “theft on an especially grand scale.”
At 4:15 p.m. (CST), the APMEX precious metals spot prices were:
- Gold - $1,725.10 – Down $24.20.
- Silver - $32.12 – Down $0.56.
- Platinum - $1,523.00 – Down $26.50.
- Palladium - $633.00 – Down $12.80.