Mid-Day Gold & Silver Market Report – 12/9/2011
GOLD IS SOLID ASSET
Precious metals prices were up and remained positive this morning. With Europe’s evolving debt crisis, investors are attracted to Gold as a way to safeguard their assets. One analyst said investors are acting on concern and fear by buying Gold. He claimed this is a direct response to central banks’ monetary policies being loose and that real interest rates are negative.
The European Union Summit continued into the early hours of the morning with more than 10 hours of deliberation. The outcome from the 27-nation treaty conference included several ideas to implement a fiscal union. However, not every EU member was on board for a revision of the treaty that dates to the 1950s. British Prime Minister David Cameron strongly argued the fact that the treaty should include regulatory exemptions that would protect the UK’s financial services industry. Cameron commented on the fact that it would be insane for the UK to sign up for any austerity measures in light of the UK’s current economic condition. French President Nicolas Sarkozy said, “Our British friends made unacceptable demands.” Cameron stated that Britain “would never join the euro.”
Moody’s downgraded three French banks based on the continued negative economic outlook in Europe. Moody’s elaborated by saying, “The probability that the (banks) will face further funding pressures has risen in line with the worsening European debt crisis.”
At noon (CST), the APMEX precious metals spot prices were:
- Gold - $1,715.60 – Up $4.20.
- Silver - $32.21 – Up $0.69.
- Platinum - $1,516.10 – Up $20.70.
- Palladium - $683.90 – Up $8.60.