Mid–Day Gold & Silver Market Report – 3/1/2012
GOLD, SILVER PRICES RECOVERING FROM WEDNESDAY’S DOWNTURN
Gold and Silver prices have been moving up through the morning, recovering from yesterday’s significant move down. Comments made by Federal Reserve Chairman Ben Bernanke are widely viewed as the cause of the strong sell-off, and Bernanke is back speaking before Congress today. There is strong interest as to whether Bernanke’s tone will remain the same, or whether he will open the door for a little more wiggle room regarding another round of quantitative easing. Along with the downturn in the Gold price, the equities market was down, as well. There is concern that Bernanke’s comments could damper the recent surge in equity prices.
Contrary to Bernanke’s optimism, two reports that just came out today paint a different picture. Manufacturing in the U.S. softened in February, and consumer spending in January was flat for the third month in a row. “Things are not so rosy in the garden, and the consumer is still facing significant headwinds here,” said Ray Attrill, head of currency trading for North American BNP Paribas in New York. All of this points to weak consumer spending through the first quarter of 2012.
At noon (CST), the APMEX precious metals spot prices were:
- Gold - $1,721.10 – Up $9.30.
- Silver - $35.30 – Up $0.64.
- Platinum - $1,703.10 – Up $9.50.
- Palladium - $718.00 – Up $9.60.