Morning Gold & Silver Market Report – 12/22/2011
U.S. WARNED AGAIN; MIXED ECONOMIC REPORTS RELEASED
U.S. stock futures and the U.S. dollar are rising this morning, after the release of the weekly jobless claims report. Economists expected a rise in claims, but the report showed that 4,000 fewer people filed for unemployment benefits last week. As expected, the number is still in line with a level consistent with an improving economy, and the 364,000 filings are the lowest since April 2008. Third-quarter Gross Domestic Product numbers also were released, reflecting a revision downward by 0.2%. A key measure of inflation was revised higher, and consumer spending was weaker than originally reported. Gold and Silver gave up mild gains after the positive unemployment numbers were reported.
Fitch Ratings placed the U.S. on warning again regarding the country’s AAA credit rating, though it said a decision likely wouldn’t come until 2013. “Federal debt will rise in the absence of expenditure and tax reforms that would address the challenges of rising health and Social Security spending as the population ages,” the company said in a statement. “The high and rising federal and general government debt burden is not consistent with the U.S. retaining its ‘AAA’ status despite its other fundamental sovereign credit strengths.” The agency said a “credible plan” must be crafted to solve the problem of a large budget deficit.
At 8 a.m. (CST), the APMEX precious metals spot prices were:
- Gold - $1,608.50 – Down $5.20.
- Silver - $29.20 – Down $0.08.
- Platinum - $1,422.10 – Down $10.60.
- Palladium - $631.20 – Down $3.90.