Mid-Day Gold & Silver Market Report – 4/12/2012
EXPERTS KEEP SPAIN IN CROSSHAIRS; FED REPORT POSITIVE
Gold has taken over the top spot in price per ounce over Platinum, and many factors are contributing to that. Past events have led to this hierarchy, but those events were temporary. It’s possible this is a new normal for the relationship between Gold and Platinum, as it has been this way for 145 of 172 trading days now. One driving factor is that central banks have been stockpiling Gold reserves.
The economic issues in Spain continue to worry experts. With a growing budget deficit and a 23 percent unemployment rate, the outlook is grim. But there are hopes for recovery. Spain’s prime minister has a plan to reduce debt and shore up the banks. There have been positive signals. Deutsche Bank economist Gilles Moec said, “We've seen more progress in a few days than in four months.”
The Federal Reserve released its “Beige Book” summary with positive news about the U.S. economy. The auto industry sales and growing manufacturing of tech goods are the main reasons for the upswing. The news was not all positive, however. A large portion of the report focused on high gasoline prices and effects on industry. “This confirms that it’s a strengthening economy, and that takes pressure off the Fed,” economist Eduardo Martinez said. This is the first positive Beige Book seen in a year’s time.
At 12:14 p.m. (CDT), the APMEX precious metals spot prices were:
- Gold – $1,679.80 – Up $19.00.
- Silver - $32.56 – Up $0.98.
- Platinum - $1,606.00 – Up $22.70.
- Palladium - $654.60 – Up $17.10.