Morning Gold & Silver Market Report – 9/11/2012

Geoffrey Varner

9/11/2012 8:04:00 AM

GOLD GAINING MOMENTUM, GERMANY WORRIED ABOUT U.S. DEBT

Gold is trading around six month highs today as the euro is gaining strength against the dollar. Gold has a positive relationship to the euro currently and, at +0.75, is at its most positive correlation in two months. There are growing expectations about what will come out of Thursday’s Federal Reserve meeting. Speculation is that a quantitative easing announcement could send the price of Gold over $1,800.

German Finance Minister Wolfgang Schaeuble has brought into question the United States’ high level of debt. He said in a speech to the lower house of parliament that U.S. debt is a burden for the global economy. He underscores the fact that the rest of the world is keeping their eye on the U.S. elections and is concerned about our ability to deal with our mounting debt once the elections are over. This comes just after the United States national debt reached an inauspicious $16 trillion.

Adding insult to injury, the U.S. trade gap widened in July. This was the first time in four months that demand for U.S. produced goods decreased. The trade gap grew 0.2 percent to $42 billion. A positive side is that the decline is smaller than projected. The widening trade gap is due in part to stagnant economies in Europe.

At 9 a.m. (EDT), the APMEX Precious Metals spot prices were:

• Gold, $1,736.10, Up $5.30.
• Silver, $33.82, Up $0.19.
• Platinum, $1,608.00, Up $3.20.
• Palladium, $675.80, Up $3.00.

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