Mid-Day Gold & Silver Market Report – 7/6/2011
Ryan Schwimmer
7/6/2011 12:10:00 PM
GOLD MARCHES FORWARD – DOLLAR LEADING CHARGE?
The U.S. dollar is strengthening, thanks in part to the euro slipping on news of Portugal’s debt rating being slashed (EU officials are blasting ratings agencies for anti-European bias), the end of QE2, and a rate increase in China. Gold and silver are enjoying gains along with the dollar, in an atypical-but-not-unheard-of move. One researcher remarked that gold will typically trade lower in the summer due to the old-fashioned “sell in May” theory. He added, “Gold’s current strength signals that something’s very seriously amiss on both sides of the Atlantic … But if Greece, Portugal, and the U.S. debt-ceiling ruckus don’t allow that typical pullback to come through, gold prices could run straight onto their very typical autumnal surge. India’s festive demand will then return, running straight onto China’s heavy New Year gold buying in January/February.”
A stronger dollar obviously doesn’t mean the country’s debt problems are gone. President Obama is siding with House Speaker John Boehner, insisting that negotiators resist the temptation to “kick the can down the road” and settle for a makeshift, short-term solution to stave off a first-ever U.S. default on August 2. The administration and congressional leaders are going to take this opportunity to focus on a long-term budget plan to raise the debt limit. An agreement will have to be reached by some point between July 15 and July 22 in order to write a bill and comply with congressional rules which require advance publication before consideration, according to the White House.
At 12:00 pm (CT) the APMEX precious metals spot prices were:
- Gold - $1,530.30 – Up $16.60 on the day.
- Silver - $36.12 – Up $0.65.
- Platinum - $1,738.10 – Down $4.00.
- Palladium - $774.50 – Down $3.20.
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
