Mid-Day Gold & Silver Market Report 3/20/2012
OIL PRICES DROP; GOLD JEWELERS CONTINUE STRIKE IN INDIA
Precious metals prices remained down following this morning’s trend. Gold’s price has been affected by a stronger U.S. dollar and lower oil prices. Oil prices have dropped from a three-week high, with U.S. crude supply increasing and an assumption that Saudi Arabia will boost its oil output. “The market is currently well-supplied with oil, but supply disruptions and looming supply shortage from Iran is keeping uncertainty high,” said Hannes Loacker with Raiffeisen Bank International AG, who predicts U.S. oil futures will average $104 this year. “Without an intensifying Iran conflict, further price gains aren’t justified.” Gold jewelers in India are continuing their strike, demanding the dismissal of the excise duty of 1 percent on Gold jewelry that is nonbranded. The bullion industry has lost an estimated $199 million in daily sales because of the recent strike.
The Greek debt crisis seems to be resolved and out of the news lately. But there are other countries in Europe that are experiencing financial crisis that must take into consideration how they can reduce their budget deficits and call for restructuring to be more competitive. U.S. Treasury Secretary Timothy Geithner said Europe was only at the initial stages of a long and difficult path toward fiscal sustainability, and he warned heavily indebted countries not to resort to draconian measures to fix their budgets, according to congressional testimony released Monday.
At noon (CDT), the APMEX precious metals spot prices were:
- Gold - $1,656.00 – Down $12.90.
- Silver - $32.34 – Down $0.66.
- Platinum - $1,656.40 – Down $29.30.
- Palladium - $698.00 – Down $9.60.