Mid-Day Gold & Silver Market Report – 5/3/2011
Timothy Oakes
5/3/2011 12:15:00 PM
OBAMA LOOKS GOOD WITH BIN LADEN, BUT ECONOMY ISSUES PERSIST
The stock market looks to be the main benefactor of the news regarding the death of Osama bin Laden. Investors have been avoiding stocks, in part, due to global security. Most strategists believe this will help the stock market. The missing component to the good news is the continued fall of the U.S. Dollar. The slide continues as the dollar hit its weakest level in 16 months compared to the euro. According to Jim O’Neill, chairman of Goldman Sachs Asset Management of London, “It is a positive symbolic gesture for U.S. leadership, and Barack Obama in particular. Of course, beyond this immediate reaction, markets need to be careful as bin Laden has possibly not been the single biggest security threat directly for many years, and those who will regard him as a martyr won’t give up as a result of his killing.”
Global conditions are still a concern that should not be discounted either. Greek debt restructuring is seen as inevitable. The Greek government is planning a crackdown on tax evaders employing the ‘Name and Shame’ philosophy. Libyan rebels are fleeing western Libya in droves, crossing the Tunisian border and boating to Europe. Japan still has concerns over their nuclear fallout and billions of dollars in damages as a result of the natural disasters.
The impact to precious metals still supports the safe haven appeal of gold as an insurance policy. According to Peter Fertig of Quantitative Commodity Research, “I don’t expect this [drop in gold prices] to be a lasting factor, terrorism remains a threat to Western society and for that reason, there is no convincing argument to abandon gold as a safe-haven if one has bought it as a safe-haven against terrorism."
At 12:01 PM CST The APMEX precious metals prices were:
- Gold price - $1,542.40 (down $16.20)
- Silver price - $42.85 (down $3.29)
- Platinum price - $1,863.00 (down $13.70)
- Palladium price - $784.00 (down $2.10)
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
