Mid-Day Gold & Silver Market Report – 11/14/2011

Craig C. Calvin

11/14/2011 12:03:00 PM

EURO ZONE’S OPTIMISM FADING; SUPER COMMITTEE DEADLINE NEARS

Gold prices have fallen today, pushed down by a strengthening of the U.S. dollar that has come in response to renewing fears that Greece and Italy won’t be able to adequately address their debt issues.

With Italy and Greece trying to form new governments to curtail the debt crisis in the euro zone, markets in the U.S. have edged downward in response to the euro’s perceived instability versus the dollar. Last week’s optimism about the ability of new governments in Italy and Greece to initiate needed financial reforms seems to be fading, as indicated by the euro’s fall against the dollar today. Mark Luschini, chief investment strategist at Janney Montgomery Scott, explained it by saying, “Last week, the markets chose to treat the glass as half full in interpreting the retirement of the regimes in Greece and Italy as positive, but it did nothing to cure the underlying issues.”

Only 10 days remain for the U.S. Congress’ so-called Super Committee to reach a consensus on reducing the deficit by $1.2 trillion over the next 10 years. In an interview today, former U.S. Comptroller General David Walker said that although he thinks the Super Committee eventually will come to agreement, the $1.2 trillion-dollar reduction will do little if anything to lower the projected U.S. deficit. In addition to the proposed deficit cuts, the committee must also decide whether emergency stimulus measures (unemployment benefits and the payroll tax cut) should be extended through next year. Goldman Sachs has warned that if those emergency stimulus measures aren’t extended, the country’s GDP could drop up to a full point.

At 12:01 p.m. (CST), the APMEX precious metals spot prices were:

· Gold - $1,779.30 – Down $10.70.

· Silver - $34.03 - Down $0.69.

· Platinum - $1,642.00 - Down $4.70.

· Palladium - $665.60 - Up $0.80.