Morning Gold & Silver Market Report – 3/26/2012

MARKETS CLIMB AFTER FED CHAIRMAN’S REMARKS 

Speaking this morning in Washington, D.C., Federal Reserve Chairman Ben Bernanke expressed concerns that the recent trend in job growth can be sustained. The primary factor behind the weak job market is weak demand and not structural, such as the lack of skills in the workforce. Bernanke said recent gains might only be related to the large layoffs during the recessions. Going forward, increases are going to have to come from economic growth, which is a bigger challenge. The Gold and Silver markets, as well as the equity markets, bounced up on the news. Analysts see this as an indication that interest rates will remain low for the foreseeable future and the likelihood of a third round of quantitative easing is on the rise.

Gold prices hit a one-month high this morning after Bernanke characterized the labor market as “far from normal.” Gold prices were further fueled by a stronger euro and more speculation that any negative relapse in U.S. economic data would trigger the Fed to implement QE3.

Iranian President Mahmoud Ahmadinejad said Monday the United States is no longer in a position to dictate policy to the rest of the world. He also cautioned that there is a growing instability between Western nations and Pakistan. Ahmadinejad, speaking in Afghanistan, called for the immediate withdrawal of U.S. and NATO troops. “It is better to respect nations than to scare them and colonize them. The time of imperialism is long gone. Those who do not learn from the mistakes of history will be punished,” Ahmadinejad said.

At 8 a.m. (CDT), the APMEX precious metals spot prices were:

• Gold - $1,681.70 – Up $17.80.
• Silver - $32.69 – Up $0.37.
• Platinum - $1,641.20 – Up $12.40.
• Palladium - $667.00 – Up $6.10.