OIL PRICE KEEPS RISING; GOLD, SILVER PRICES SOFTEN
Oil prices have gone up the past two weeks and look as if they might make a run at a third consecutive week. A CNBC poll showed 75 percent of analysts and traders are expecting higher prices this week. There is concern that rising oil prices could put the brakes on a fragile global economic recovery. The United States has experienced sharp price hikes at the gasoline pump of late, and there are those who speculate we could see $5 per gallon gasoline during peak driving season this summer. It is worth mentioning that in the longer term, the Gold price has a positive correlation to the price of oil.
There was even more violence in Afghanistan today, as a suicide bomber killed nine people in an attack on a military airport. Although there has been nothing official, it is believed this is another revenge response by the Taliban for recent burnings of the Koran. The U.S. Embassy is warning that there are heightened risks for U.S. citizens in Afghanistan. So far, the U.S. is resisting talks suggesting we should pull out our troops ahead of schedule.
The Group of 20 finance ministers (G-20) met over the weekend and decided not to increase funding for the International Monetary Fund (IMF), until they see more evidence that a firewall has been set up to contain the eurozone debt crisis. This delay caused precious metals prices to dip in morning trading, although prices were rebounding, and Silver was showing a gain.
At 8 a.m. (CST), the APMEX precious metals spot prices were:
- Gold - $1,773.10 – Down $2.30.
- Silver - $35.48 – Up $0.08.
- Platinum - $1,709.80 – Down $6.30.
- Palladium - $709.10 – Down $2.70.