Morning Gold & Silver Market Report – 4/16/2012

GOLD PRICE DIPS ON SPAIN CONCERNS  

Gold prices were heading lower this morning as the financial situation in Spain continues to cause investor concern. As fears intensify, it is likely that Spain’s debt costs during this week’s bond auction will rise. This decreased appetite for higher risk is driving the euro lower, allowing the U.S. dollar to gain strength. Couple this with the signs of a weakening Chinese economy, and Gold prices could continue to feel pressure.

The March retail report came out better than expected, but the manufacturing report for the New York region dropped sharply. Total retail sales were up by 0.8 percent, which beat expectations. However, this news was somewhat offset by the dismal New York manufacturing report. Economists expected a drop from 20.21 in February to 17.50 in March for that region, but instead the index dropped to 6.56.

Inflation in India slowed less than expected in March. Increases in food and energy costs were somewhat offset by a decrease in manufacturing. This continuing inflation trend is keeping alive hopes that the Reserve Bank of India will step in with rate cuts.

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

• Gold - $1,653.40 – Down $7.30.
• Silver - $31.63 – Up $0.18.
• Platinum - $1,572.50 – Down $14.40.
• Palladium - $645.50 – Down $2.80.

APMEX’s Account Managers now have extended hours and are here to serve you until 7 p.m. (CDT) Mondays through Thursdays, and until 5 p.m. (CDT) on Fridays! 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