Mid-Day Gold & Silver Market Report – 7/5/2011
Robert Davis
7/5/2011 12:09:00 PM
WTO SIDES WITH U.S. IN CHINA TRADE DISPUTE – The World Trade Organization has ruled that China broke international trade regulations by limiting exports of raw materials. The dispute was originally brought before the WTO in 2009 by the U.S., EU, and Mexico. The complaints deal specifically with duties imposed on raw materials produced in China, which cause the price of the goods to greatly favor Chinese companies. China is a leading producer of aluminum, coal, and rare earth metals.
Gold and other safe haven assets have risen so far today, amid a slight decrease in U.S. stock prices. Stock indexes shot up last week, with U.S. indexes seeing their best weekly increase in two years, which has led some to speculate a pullback may be close at hand. The euro has sold off some today, causing a relative increase in the value of the dollar.
However, with huge debt issues looming in both economies, it’s hard to see any light at the end of the tunnel. If U.S. lawmakers fail to reach an agreement by August 2nd, the government will have no money left with which to pay its debts. If lawmakers do reach an agreement, the U.S. is able to borrow more, which makes the situation even more unsustainable.
At 12:07PM (CT) the APMEX precious metal prices were:
- Gold price - $1,512.30 – Up $28.70
- Silver price - $35.25 – Up $1.49
- Platinum price - $1,741.50 – Up $24.70
- Palladium price - $776.60 – Up $17.20
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
