Morning Gold & Silver Market Report – 4/10/2012
STRING OF BAD DATA BOOSTS DEMAND FOR METALS
Demand for Gold and Silver is pushing prices upward at the moment after missed estimates on economic data. Federal Reserve Chairman Ben Bernanke said the U.S. economy is “far from having fully recovered,” speaking in regard to the disappointing jobs report released Friday. In addition, China unexpectedly reported a trade surplus last month, furthering speculation that demand is slowing in that country.
Worries over the recent string of negative economic reports have not only affected U.S. stocks (which are on a four-day losing streak), but the data is also affecting European stocks. Peel Hunt’s Ian Williams said although the disappointing numbers may point to further easing from the Fed, the “risk-off mood that prevailed in the early days of the second quarter seems likely to persist for now.” Precious metals have been a source of safety and insurance in times of economic uncertainty.
Geopolitical tensions have increased between many Asian countries regarding North Korea’s planned rocket launch. South Korea, Russia, China, Japan and Western countries have all expressed concern about (or have outright condemned) this launch. While North Korea claims this launch is only to put a weather satellite into space, U.N. sanctions that are meant to keep the country from developing nuclear missiles will be breached.
At 8 a.m. (CDT), the APMEX precious metals spot prices were:
- Gold – $1,647.80 – Up $3.40.
- Silver – $31.70 – Up $0.12.
- Platinum – $1,606.60 – Down $10.60.
- Palladium - $641.30 – Down $3.50.
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