Morning Gold & Silver Market Report – 3/30/12
BOOST TO EUROZONE BAILOUT FUND PROVIDES BOOST TO METALS
Precious metals and U.S. stock futures received a boost this morning, mainly due to a boost of a different kind. A statement from eurozone finance ministers this morning read, “All together, the euro area is mobilizing an overall firewall of approximately 800 billion euros, more than 1 trillion dollars,” to help protect against the spread of the debt crisis. This move boosted the euro, causing metals to follow suit.
Echoing the sentiments of many, Sam Chandan of Chandan Economics said, “An extraordinarily low interest rate environment has become our drug of choice (in the U.S.). But the potential impact on the economy over the long run, in terms of how it distorts the markets, is potentially quite toxic. (It is) something we got to back away from.”
The ongoing civil oppression in Syria took a new twist today, as Iran has helped the country ship oil to China, providing an $80 million benefit to the government of Syrian President Bashar al-Assad. This is in direct defiance against Western sanctions, with which Iran is familiar. Syria and Iran seem to be strengthening their alliance at a time when Western powers have attempted to contain issues regarding those Middle Eastern countries.
At 8 a.m. (CDT), the APMEX precious metals spot prices were:
- Gold – $1,666.70 – Up $12.50.
- Silver - $32.52 – Up $0.48.
- Platinum - $1,645.20 – Up $17.90.
- Palladium - $653.20 – Up $7.70.
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