Mid-Day Gold & Silver Market Report, 7/10/2012

Brandi Brundidge

7/10/2012 12:14:00 PM

GOLD PRICE FALLS AS FLIGHT TO AMERICAN DOLLAR CONTINUES  

The Gold price has retreated during midday trading as nervous investors are flocking to the American dollar. Weaker Chinese export data and a falling euro added to the pressures on Gold, and strengthened the view that the dollar is the safe haven of the moment. “The market is being a little pessimistic and cautious about the global economy, and investors are choosing the dollar as the top safety haven,” said Li Ning, an analyst at Shanghai CIFCO Futures. “The strength in the dollar is, in turn, putting pressure on Gold prices.”

Eurozone ministers have agreed to grant Spain an extra year to meet targets in deficit reduction, and set guidelines for a proposed aid package. The hope is this measure would prevent Spain from needing a full bailout in the face of a worsening recession. “There’s no emergency here; there’s a clear path towards stabilization,” Luxembourg Finance Minister Luc Frieden said of the measures that will apply for Spain. “The markets have to realize that the money is there, more money than is necessary.”

At 1 p.m. (EDT), the APMEX Precious Metals spot prices were:

• Gold, $1,581.50, Down $9.10.
• Silver, $27.00, Down $0.52.
• Platinum, $1,429.40, Down $16.50.
• Palladium, $577.50, Down $7.40.

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