Closing Gold & Silver Market Report – 12/7/2011
GERMANY RAINING ON PARADE; WHAT IS ISRAEL DOING?
During afternoon trading, Gold has been relatively stable in price. In a note to investors, ANZ analysts wrote, “If European leaders manage to come up with a plan, we will likely see a relief rally in the euro, which will take Gold higher with it.”' Platinum continues to run at a discount to Gold over the past three months, which is the metal’s longest disparity since 1985. Palladium supply concerns have the metal on the rise, reaching an 11-week high today.
Some comments by German officials and new economic figures have taken a lot of the allure or hope of resolution off the upcoming EU summit. An anonymous German official said, “I have to say today, on Wednesday, that I am more pessimistic than last week about reaching an overall deal. … A lot of protagonists still have not understood how serious the situation is. … My pessimism stems from the overall picture that I see at this point, in which institutions and member states will have to move on many points to make possible the new treaty rules that we are aiming for.” U.S. Treasury Secretary Timothy Geithner, following his meeting with the French Finance Minister Francois Baroin, said, “I have a lot of confidence in what the president of France and the minister are doing, working with Germany to build a stronger Europe.”
Israel’s lack of direction involving Iranian military action has many U.S. government officials worried what action Israel could take toward Iran. The U.S. prefers sanctions and diplomatic intervention. U.S. officials have a “sense of opacity” regarding what Israel could do militarily to Iranian nuclear sites. “I don't think the administration knows what Israel is going to do. I’m not sure Israel knows what Israel is going to do. … That's why they want to keep the … bad guys guessing,” said U.S. Sen. Carl Levin, D-Mich., chairman of the Senate Armed Services Committee. Republican John McCain of Arizona corroborated that view, saying, “I'm sure they (administration officials) don't know what the Israelis are going to do. They didn't know when the Israelis hit the reactor in Syria. But the Israelis usually know what we’re going to do.” The unintended consequences of military action against Iran from a known ally could make the U.S. a possible target of military retaliation.
At 4:10 p.m. (CST), the APMEX precious metals spot prices were:
- Gold - $1,744.10 – Up $14.30.
- Silver - $32.58 – Down $0.15.
- Platinum - $1,530.40 – Up $5.40.
- Palladium - $680.50 – Up $9.70.