Morning Gold & Silver Market Report – 12/7/2011
NEXT STOP FOR GEITHNER: FRANCE
Reports of positive economic news were enough to lift Wednesday’s stock futures. Investors are waiting on the results from Thursday’s European Central Bank meeting, in which the result is expected to be a lowering of interest rates. The big card on the table is the proposed new EU treaty that would include tougher budget rules. Treasury Secretary Timothy Geithner is headed to France to continue promoting the American agenda as he meets with French, Italian, and Spanish officials.
As the stock market is somewhat buoyed by the EU news, gold is holding steady, almost with a wait-and-see attitude. "For the moment gold is likely to trade with the rest of the commodity sector and the short-term outlook depends on what we hear from the summit," said Eugen Weinberg, head of commodity research at Commerzbank. Gold saw additional price pressure as the euro fell against the dollar overnight. A stronger dollar makes gold and other commodities more expensive for holders of other currencies, like the euro.
In news that could affect markets in the future, the U.S. senate has “too-big-to-fail” banks back on its radar. Senator Sherrod Brown is holding a hearing today regarding “new oversight authority to shield Main Street from Wall Street megabank risk.” Brown continued, “For too long, Wall Street has been permitted to operate in the dark, putting our economy at risk and leaving taxpayers on the hook.”
At 8 a.m. (CST), the APMEX precious metals spot prices were:
- Gold - $1,734.90 – Up $5.10.
- Silver - $32.64 – Down $0.10.
- Platinum - $1,523.00 – Down $2.00.
- Palladium - $683.60 – Up $12.70.