Closing Gold & Silver Market Report – 4/12/2012
CHINA’S CENTRAL BANK BUYING GOLD?
Precious metals prices enjoyed a bounce-back day primarily on technical buying. RBC’s George Gero said, “People decided they wanted to get back into the market. People who thought we’d have a back-and-forth today were on the wrong side. You can search for news, but you’ll come up empty-handed.” The jobless claims data supposes there could be another round of quantitative easing, but based on previous reports over the past month, and release of Fed meeting minutes, that would really be the call of the investor.
China’s Gross Domestic Product data is scheduled for release Friday, and the report will be closely scrutinized. VTB Capital’s Andrey Kryuchenkov said, “It’s good that Gold has bounced back up. I don’t expect sustained losses, but neither do I expect sustained gains, because tomorrow you have Chinese GDP data, but you also have U.S. inflation (data due for release), and that is going to be closely watched.”
China’s central bank seems to be secretly increasing its Gold buying, certain sources have indicated. MarketWatch’s Peter Brimelow has been following news sites and is intrigued by some of the more interesting news coming out of China, including Hong Kong’s exports being about 13 times higher this year as opposed to last year at the same time. That could indicate the People’s Bank of China is continuing to accumulate the yellow metal. China is the world’s largest producer of Gold and is a major importer of Gold, as well. The implication of this action supports a view of strong underlying demand, which could soften the effect of any drops in price. Gold remains above its 65-week moving average.
At 4:15 p.m. (CDT), the APMEX precious metals spot prices were:
- Gold - $1,676.80 – Up $16.00.
- Silver - $32.41 – Up $0.83.
- Platinum - $1,607.40 – Up $24.10.
- Palladium - $653.80 – Up $16.10.
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