Morning Gold & Silver Market Report – 2/20/2012
WEEKEND EVENTS PUSH GOLD, SILVER HIGHER
The New York Stock Exchange is closed for President’s Day, but the precious metals market opened at its regularly scheduled time at 5 p.m. (CST) Sunday. Two events over the weekend pushed precious metals prices upward. First, the People’s Bank of China announced it was cutting major lender’s reserve requirements by 50 basis points. The call is to catalyze lending and increase liquidity. Commodities went up across the board, and precious metals prices went right along with them.
Second is the hope that a Greek bailout would be approved later today. The finance ministers from 17 nations are in Brussels, Belgium, discussing a $130 billion-euro ($172 billion U.S.) deal, which would be the second rescue in two years. There is still the question of how much private bond-holders will give up, along with concerns that even if a bailout happens, Greece eventually will default.
Oil futures surged 2 percent Sunday night on reports that Iran already has stopped shipping crude oil to British and French companies. Iran said it would ship this oil to new customers instead. Prices for Brent and WTI oil futures went up in low-volume trading.
At 8 a.m. (CST), the APMEX precious metals prices were:
- Gold - $1,734.70 – Up $9.30.
- Silver - $33.61 – Up $0.32.
- Platinum - $1,650.00 – Up $15.10.
- Palladium - $695.00 - Up $5.90.