Mid-Day Gold & Silver Market Report – 3/15/2012
GOLD PRICE HOLDS STEADY; U.S., U.K. TO RELEASE OIL
Gold has continued to hold onto modest opening gains, as the drop from previous sessions is attracting bargain hunters. The metal may be vulnerable to more selling, if easing expectations continue to fade and the dollar continues to strengthen. In a note to its investors, Commerzbank wrote, “As the price falls below important support levels, we may see further selling on the part of money managers. We regard this development as positive for the Gold price in the medium term, because the exit of ‘weak hands’ paves the way for the next price rise.” William Adams, at metals-data provider FastMarkets, supported that position, saying, “There is a risk of further weakness, but equally we would not be surprised if bargain hunters start to provide support. And if prices start to move higher, then follow-through buying may well follow.”
In an effort to fight rising domestic gasoline prices, Britain has decided to cooperate with the United States in a release of strategic oil stocks. “We regularly consult with the British on energy issues, and any discussion that we had was in that context. We will continue to monitor the situation and consult with them and others,” said an official in the Obama administration. Rising oil prices have begun to have a global effect, and they are hitting U.S. citizens especially hard at the gas pump. Those increases are causing preliminary fears of upsetting the fragile global economic recovery.
National Mining Corp. has announced that it has found Gold deposits in southern Ethiopia that may produce at least 10 metric tons a year, which would nearly double its national output. National Mining’s Chief Executive Melaku Beza said the Okote site in Ethiopia’s Oromia region has more than 550 tons of Gold, of which 73 tons may be ready for extraction within 24 months. The company, which is closely held by Saudi Arabian billionaire Mohammed al-Amoudi, plans to invest $150 million in the initial phase of production. This is certainly a nice Gold find from a supply perspective, but it will obviously take time to refine and make its way into the market.
At noon (CST), the APMEX precious metals spot prices were:
- Gold - $1,658.20 – Up $13.80.
- Silver - $32.61 – Up $0.39.
- Platinum - $1,685.80 – Up $9.50.
- Palladium - $709.70 – Up $12.30.