Morning Gold & Silver Market Report, 7/11/2012
Ryan Schwimmer
7/11/2012 8:01:00 AM
INVESTORS SEEKING SAFE HAVENS; GREECE FACES OPPOSITION
Gold is trading slightly lower this morning, while Silver has given up some early gains amid news that the United States trade deficit narrowed. The 3.8 percent drop in the deficit was expected, so it has not had much effect on the markets. However, in a new sign that the economic recovery in the country is shaky, hiring from American companies declined. The main focus for the day is on the release of the Federal Open Market Committee minutes, set for 2 p.m. (EDT).
The situation in Greece is still negative. There is much speculation on when the newly formed pro bailout government in that country will run out of money, and when the next bit of aid will come from the European Union and the International Monetary Fund. There are political issues with the bailout, as well, with the new government being asked to make more cuts before more money is received, and opposing political parties are standing in the way. Leftist leader Alexis Tsipras said recently, “The bailout is a political and economic crime imposed on the country by the troika.”
Concerns over events like those in Greece have investors seeking out safe havens. Lately, that haven has been the American dollar instead of the traditional safe haven investment: Gold. However, with “taxmageddon” looming and what looks to be a dicey election, many are wondering how long the dollar will hold that status. One thing seems clear: Equity markets are not where investors are looking for safe investments. Jiban Nath of Solo Capital said, “The problem in the equity markets at the moment is confidence -- there is very little of it.”
At 9 a.m. (EDT), the APMEX Precious Metals spot prices were:
- Gold, $1,574.40, Down $6.90.
- Silver, $26.97, Up $0.02.
- Platinum, $1,423.00, Down $6.70.
- Palladium, $577.10, Down $0.50.
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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
