Closing Gold & Silver Market Report – 3/21/12

WEAK SUPPLY BOOSTS OIL PRICES; GOLD, SILVER PRICES STEADY     

A weekly government report showing a surprising decline in oil inventories sent the price of crude oil futures upward. Prices reached as high as $106.91 on the New York Mercantile Exchange. The Energy Information Administration also reported that gasoline stockpiles were down 1.2 million barrels. Gold and Silver prices gained modestly through the day.

According to written testimony to Congress, Federal Reserve Chairman Ben Bernanke says the Fed will act if Europe falters again. Bernanke said that although Europe’s financial troubles have eased, the eurozone is not out of the woods. If conditions should deteriorate, the central bank would be prepared to step in. He stressed that a further strengthening on the European banking system is required to guard against contagion in sovereign debt markets.

Investors will be closely watching Thursday’s jobless claims report in search of indicators of the upcoming March jobs report. “It’s a survey week, so they’re going to take on a bit more significance,” said Joseph LaVorgna, chief economist at Deutsche Bank. Most economists are predicting a slight uptick and an improving four-week moving average.

At 4 p.m. (CDT), the APMEX precious metals spot prices were:

• Gold - $1,652.30 – Up $3.60.
• Silver - $32.22 – Up $0.35.
• Platinum -$1,642.50 – Down $12.80.
• Palladium - $686.00 – Down $11.10.