Morning Gold & Silver Market Report – 3/21/2012
GOLD STEADY; BERNANKE GIVES ADVICE TO EUROPE
Gold is relatively steady this morning, while silver is up about one percent. The euro is looking stronger against the dollar, but the slump in gold demand due to the strike of Indian jewelers seems to be limiting gold’s push higher for the moment. Matthew Turner, an analyst at Mitsubishi, believes that a return of Europe’s debt crisis would be a “major bullish event on the positive side” for gold, however difficult it may be to judge how the news would affect the metal.
Federal Reserve Chairman Ben Bernanke said that Europe must aid its banks, even amid reduced stress in the eurozone. Bernanke also added that, despite U.S. banks having “limited exposure to peripheral European countries … European holdings represented 35 percent of the assets of prime U.S. money market funds in February, and these funds remain structurally vulnerable despite some constructive steps.” Europe aiding its banks could lead to more quantitative easing in the eurozone, which would possibly be supportive for gold’s price.
China has been a major factor for the global economic recovery, and today, worries regarding the slow economic growth in the country caused most Asian markets to drop. Conita Hung of Delta Asian Financial Group believes that such concerns have affected global sentiment in a way that has overshadowed the markets.
At 8:30 a.m. (CDT), the APMEX precious metals prices were:
- Gold - $1,655.30 – Up $6.80.
- Silver - $32.18 – Up $0.31.
- Platinum - $1,642.30 – Down $13.00.
- Palladium - $692.40 – Down $4.70.
APMEX’s Account Managers now have extended hours, and are here to serve you until 7:00 p.m. CDT! Feel free to give us a call to place your order!