Morning Gold & Silver Market Report – 5/16/2011
Peter LaTona
5/16/2011 8:14:00 AM
ARREST OF IMF CHIEF CASTS MORE UNCERTAINTY ON EURO ZONE CRISIS - The International Monetary Fund’s Chief Executive, Dominique Strauss – Kahn was arrested in New York City on Sunday on charges that he allegedly raped a hotel maid. Strauss-Kahn was also leading in the polls to become France’s next president. As IMF Chief, Strauss-Kahn was a charismatic leader who led the IMF through 2007-2009 global financial meltdown. He has been a central figure in galvanizing Europe to address their debt problems. This news will add even more uncertainty as to what aid will be given to Greece and other indebted euro zone countries. The Euro dropped sharply on the news.
Gold prices are trying to absorb the conflicting news of even more uncertainty in the euro zone vs. the rising dollar. The euro slid to a 7-week low relative to the dollar, which would be seen to depress gold prices. The economic uncertainty of the European debt crisis should only lift the value of gold. Currently, both gold and silver seem stuck in the middle, not sure which way to move next.
According to a survey by the National Association of Business Economists, growth expectations for 2011 were reduced from 3.3% to 2.8%. High commodity prices were the main factor and seen as the culprit for first quarter 2011 finishing at 1.8%, while the previous quarter finished at 3.1%. They also do not forecast the federal reserve raising interest rates until first quarter 2012.
At 8AM (CT) the APMEX precious metal prices were:
- Gold price - $1,499.70 (up $4.50)
- Silver price - $35.06 (down 4 cents)
- Platinum price - $1, 765.90 (down $4.40)
- Palladium price - $718.30 (up $7.80)
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
