Closing Gold & Silver Market Report – 12/8/2011
ONE STEP FORWARD, TWO STEPS BACK AT EU SUMMIT
Precious metals prices stabilized through afternoon trading, maintaining the lows reported in the Mid-Day Market Report. The news started good this morning with European Central Bank (ECB) President Mario Draghi’s announcement of a cut in interest rates, but hopes were quickly tempered when the ECB said it would not offer assistance in bond buying.
The ECB’s decision to cut interest rates and to not buy sovereign debt bonds has created a lot of fear in global and economic market. U.S. markets are following European markets quite closely. As soon as the meeting started today, a number of measures, including the European Stability Mechanism mentioned in yesterday’s Closing Market Report, were dismissed by German officials. Germany and France are at the forefront and had much to say today. German officials dismissed a number of plans as soon as the meeting began. French President Nicolas Sarkozy said, “Never has the risk of Europe exploding been so big.” German Chancellor Angela Merkel had her own words to offer as well: “The euro has lost credibility, and this must be won back. We will make clear that we will accept more binding rules.” All the talk and initial negativity had economists concerned. Scotia Capital economist Alan Clarke said, “One step forward, two steps back. … The eurozone leaders might as well not bother. Pack their bags, go home, enjoy the weekend and do their Christmas shopping.”
At 4:13 p.m. (CST), the APMEX precious metals spot prices were:
- Gold - $1,708.10 – Down $34.70.
- Silver - $31.72 – Down $0.90.
- Platinum - $1,496.60 – Down $26.40.
- Palladium - $673.20 – Down $12.30.