Mid-Day Gold & Silver Market Report – 07/02/12
Brandi Brundidge
7/2/2012 12:01:00 PM
GOLD PRICES WATCH THE MARKET, EUROPE’S UNION SHORT LIVED
Gold prices ended last week on the rise, mostly thanks to the summit of the European Union leaders and the agreement to work together towards a common goal. As of Monday morning, those positive signs have diminished and Precious Metals prices are showing the effect. Even with the cloudy picture in the global markets, gold is still an asset to investors. "We are staunch believers that Gold will remain a risk-on asset for the foreseeable future," RBS analyst Nikos Kavalis said. "So if we continue to see a more definitive policy response by authorities, Gold will continue to benefit."
Adding fuel to the economic fire in Europe, the monthly unemployment numbers for the European Union is at a record high. The unemployment rate is the highest it’s been since the European Union was created in 1999. Compared to the United States unemployment rate of 8.2 percent, the European Union’s rate of 11.1 percent is alarming.
The road to recovery in Europe may not be as smooth as Friday’s optimism suggested. Even though the leaders of the European Union agreed to work together, they never gave any information on what would be done. One of the main goals is to buy government bonds from countries in need, therefore giving helpful monetary assistance to the debt ridden area. However, Finland and the Netherlands are among the first countries to show resistance to the plan. "Finland finds it an inefficient way to stabilize markets," said a senior Finnish government official. Unless all 17 countries agree on the plan, it will not pass.
At 12:00 p.m. (EDT), the APMEX precious metals spot prices were:
- Gold, $1602.20, Down $3.50
- Silver, $27.62, Down $0.06
- Platinum, $1455.40, Up $4.50
- Palladium, $579.10, Down $6.50
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APMEX Market Reports provide our readers with a review of spot price activity and some of the factors that may be affecting the market for Precious Metals. While the information is obtained from sources we believe to be reliable, we do not guarantee its accuracy or its completeness and we encourage you to conduct your own investigation prior to making any decision based on the information. The Market Reports are not intended as a comprehensive discussion and there may be other factors affecting the financial marketplace. These Market Reports are provided for informational purposes only and do not constitute a recommendation by APMEX to hold, purchase or sell any Precious Metal product. All orders, purchases and sales, if any, are subject to the terms of the User Agreement and other applicable policies
