Closing Gold & Silver Market Report – 4/13/2012
CHINA SETS OFF LINE OF DOMINOES
Economic data out of China seems to be the reason for the drop in precious metals’ prices today. Like a line of dominoes, a sharper-than-expected slowing of growth in the country made way for a stronger dollar, which put pressure on the price of commodities across the board. Even after today’s dip, gold has seen a positive week, gaining approximately 1.8%.
The news out of China was just one piece of the puzzle of the global economy this week, and the U.S. stock market suffered its worst week of the year. Brad Sorensen of Charles Schwab Corp. said, “Let’s not get overly concerned, but yes, there are concerns out there that we need to look at. China has been disappointing, U.S. consumer confidence adds to the pressure and Europe is not out of the woods yet.”
After the embarrassing failure in North Korea, many fear the next step is a nuclear test. A senior South Korean defense ministry official said, “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.” These tests are widely regarded as the North Koreans flexing their military muscles, as it were. White House spokesman Jay Carney said, “North Korea’s provocative action threatens regional security, violates international law, and contravenes its own recent commitments.”
At 4 p.m. (CDT), the APMEX precious metals spot prices were:
- Gold - $1,659.80 – Down $21.30.
- Silver - $31.56 – Down $1.03.
- Platinum - $1,585.00 – Down $20.00.
- Palladium - $645.50 – Down $8.60.