Morning Gold & Silver Market Report – 4/13/2012

CONSUMER PRICE INDEX UP 0.3% IN MARCH  

The Consumer Price Index rose less than 0.4 percent for February, but the index is on pace for a 3.6 percent increase for the entire year. Gasoline costs went up by 0.9 percent. These numbers should increase speculation that the Federal Reserve might have cause to step in again to boost the economy. Gold and Silver prices were heading sharply lower, but both had begun to bounce up on the news.

The weakness in Gold and Silver prices in early trading was the result of disappointing Gross Domestic Product data out of China. The slowdown in Chinese growth gave a boost to the U.S. dollar, which in turn put pressure on Gold and Silver prices.

The good news is that the North Korean long-range rocket launch failed Friday. The bad news is that this might propel North Korea toward a nuclear test. North Korea very rarely makes embarrassing public admissions, but it has admitted that its much-anticipated rocket launch was a failure. This was a particularly hard blow to that country’s new young leader. “The possibility of an additional long-range rocket launch or a nuclear test, as well as a military provocation to strengthen internal solidarity, is very high,” a senior South Korean defense ministry official told a parliamentary hearing.

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

• Gold - $1.673.00 - Down $8.10.
• Silver - $32.29 – Down 30.
• Platinum - $1,600.70 – Down $4.30.
• Palladium - $644.00 – Down $10.10.

APMEX’s Account Managers are available today until 5 p.m. (CDT)! If you have any questions about investing in precious metals or would simply prefer to place your order by telephone, we are here to help.