Morning Gold & Silver Market Report – 5/10/2011

Timothy Oakes

5/10/2011 8:02:00 AM

IS THERE A GREEK BAILOUT? MAYBE, MAYBE NOT…

Officials in Greece are refuting a rumor involving the need for a new aid package. A senior finance ministry official says, "Greece is not holding any discussion on any new aid package, such reports about discussions on new aid are not true.” German Chancellor, Angela Merkel, did not rule out Greek aid, but is awaiting the findings of EU and IMF reports. She says, “Anything else would not help Greece or Europe.”

According to reports, Chinese exports in April hit a record while their imports eased more than anticipated. The trade surplus has swelled to 16%, the widest margin since November 2010. "This number will likely add to the pressure from Washington for Beijing to allow faster currency appreciation, but more importantly should persuade Chinese policymakers that a stronger yuan can be tolerated by the economy," says Brian Jackson, an economist with the Royal Bank of Canada in Hong Kong.

The global news is buoying the sense that normality has restored precious metals markets, but there is potential for larger price moves are definitely heightened. According to Edel Tully, a UBS strategist, "Gold looks quite comfortable at $1,500, and would profit from any escalation in concerns over Greece's debt sustainability. In this climate it is also worth paying attention to the euro price of gold."

At 8 AM (CT) the APMEX precious metals prices were:

• Gold price – $1510.40 (up $5.70)
• Silver price – $38.04 (up $0.84)
• Platinum price – $1796.60 (up $0.50)
• Palladium price - $734.60 (up $3.60)