Mid-Day Gold & Silver Market Report 2/27/2012
PLATINUM MINE TO REHIRE STRIKERS; GERMAN VOTE SUPPORTS SECOND GREEK BAILOUT
Precious metals prices were holding steady with little fluctuation. Gold’s price is primarily being affected by Europe’s debt crisis and high crude oil prices. The speculation that crude oil could increase to $5 a gallon by summer concerns many U.S. residents, because some will not be able to pay a higher bill at the gasoline pump. There is fear that the nation may be heading backward rather than toward a healthy economic recovery, due to these two main driving factors. UBS reflected on Gold’s positive correlation with the euro most recently by stating, “Gold’s correlation with the euro — while still positive — has … weakened to the lowest level in almost a month. The easing of correlations should help shield Gold if a negative surprise emerges from the eurozone in the coming week or so.” South Africa’s Impala Platinum, the world’s largest Platinum mine, is set to rehire thousands of miners, a leading union said Saturday. The miners’ jobs were terminated earlier this month because of an illegal strike. The strike caused a 5 percent boost in price last week, which led Platinum to hit its peak this year at $1,714.50.
The German Parliament voted in support of the second round of the Greek bailout rescue package. The package is valued at 130 billion euros, which is designed to prevent Greece from defaulting on its debt. German Chancellor Angela Merkel stressed the importance of assisting Greece with this financial rut rather than pushing the Greeks out of the eurozone, as some German lawmakers had suggested. Merkel said if the euro is not successful in the future, it could possibly jeopardize the European Union and the global economy. Merkel commented on the economic outlook for Greece, saying, “The path that Greece has to take is a long one, and certainly one not without risks. This is also for the success of the new program. Nobody can give a 100 percent guarantee of success.”
At noon (CST), the APMEX precious metals spot prices were:
- Gold - $1,776.10 – Up $0.70.
- Silver - $35.64 – Up $0.24.
- Platinum - $1,714.80 – Down $1.30.
- Palladium - $706.00 – Down $5.80.