Mid-Day Gold & Silver Market Report – 10/18/2012
Ryan Schwimmer
10/18/2012 12:49:00 PM
PIMCO OFFICIALS BELIEVE MANY COUNTRIES WILL BE DOWNGRADED
Precious Metals prices have been relatively flat in morning trading. “Investors are not sure whether there will be more stimulus from China after today’s strong data,” Adam Klopfenstein of Archer Financial Services Inc said. A slew of Chinese economic data showed better numbers than what had been reported recently. Klopfenstein continued, “Also, the market is a little cautious about the outcome of the meetings in Europe.”
Leaders from the eurozone’s top two powerhouses, Germany and France, clashed on the reason for the EU summit. German Chancellor Angela Merkel believes that the European Commission should have greater veto power on national budgets which break EU rules. French President Francois Hollande brushed that aside, saying the agenda is focused on a banking union.
One of the key factors to Gold’s record high last year was a downgrade to the U.S. sovereign debt rating. Pimco’s Scott Mather believes that history could repeat itself, saying, “The U.S. will get downgraded, it’s a question of when. It depends on what the end of the year looks like, but it could be fairly soon after that.” Pimco’s Bill Gross said, “Almost all sovereigns with poor debt dynamics are going to get downgraded, we’re just talking about the pace. [Credit rating companies] have been slow in downgrading some sovereigns, but we think the pace probably picks up in the year ahead.”
At 1 a.m. (EDT), the APMEX Precious Metals spot prices were:
- Gold, $1,744.70, Down $7.80.
- Silver, $32.94, Down $0.31.
- Platinum, $1,645.80, Down $21.70.
- Palladium, $647.60, Down $6.80.
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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
