Closing Gold & Silver Market Report – 2/16/2012

MOODY’S WARNS OF RATINGS CUTS; PAYROLL TAX CUT DEAL REACHED  

Gold prices ended the day higher again today, pushed upward mid-session by a drop in the dollar, as well as the jump in oil prices brought on by the continued tension between Iran, Israel, and the U.S. “With the euro making a bit of recovery in the midday, Gold is getting support from the possible inflationary effects from the very robust crude oil price trends,” said Richard Hastings, a Global Hunter Securities macro strategist. Hastings said, “Inflation will inevitably bubble up, and this should give Gold its next move significantly higher towards the late spring this year.” Platinum ended the day lower in price, while Silver and Palladium charted gains.

Moody’s Investors Service announced today that 131 financial institutions worldwide could soon receive a credit rating cut. Of the financial institutions facing a rating cut, 114 are spread across Europe. Moody’s explained that any future cuts would be a result of the sovereign debt crisis plaguing the eurozone and a reflection of deteriorating creditworthiness of European governments. The institutions that Moody’s indicated could see a cut in their credit rating include Bank of America, UBS, Morgan Stanley, Goldman Sachs, and Deutsche Bank. Last week, six European nations (including Italy and Spain) had their credit ratings cut by Moody’s. At the same time, the rating service warned France, Austria, and Britain about the possibility that their credit ratings could also see cuts in the near future.

Republicans and Democrats have hammered out a deal to extend the payroll tax cut due to expire at the end of February. Although leaders from both parties indicated they would support the deal, many see the agreement as a victory for Democrats, since Republicans did not demand that the tax cut extension be offset by a corresponding reduction in spending, as has been the case during past negotiations. Despite House Speaker John Boehner’s description of the deal as fair, a number of Republicans in Congress are unhappy that this agreement will add $100 billion to this country’s national debt.

At 4 p.m. (CST), the APMEX precious metals spot prices were:

  • Gold - $1,729.00 – Up $1.90.
  • Silver - $33.55 - Up $0.07.
  • Platinum - $1,627.70 - Down $11.50.
  • Palladium - $696.50 - Up $11.80.

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Disclaimer:

APMEX’s ‘News and Commentaries’ provide our readers with a review of spot price activity and some of the factors that may be affecting the market for precious metals, three times during the trading day. 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 "News and Commentaries" are not intended as a comprehensive discussion and there may be other factors that may be affecting the financial marketplace. These "News and Commentaries" are provided for informational purposes only and do not constitute a recommendation by APMEX to hold, to purchase or to sell any precious metal product. All orders, all purchases and all sales, if any, are subject to the terms of the User Agreement and other applicable policies.

US Dollar Prices are in USD

Precious Metal Prices
4/24/2014 10:57:36 AM EST

Metal Bid Ask Change
Gold $1,289.80 $1,291.80 $5.20
Silver $19.58 $19.68 $0.19
Platinum $1,398.00 $1,408.00 $4.10
Palladium $796.10 $801.10 $14.10
4/24/2014 10:57:36 AM EST

Click here for Historical Charts*All Charts are in USD


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