Closing Gold & Silver Market Report 4/16/2012
SPAIN LIKELY NEXT EUROZONE DOMINO; WORLD BANK ELECTS PRESIDENT
A market sentiment survey conducted by CNBC shows U.S. crude oil futures should be stable this week, unless Iran’s nuclear program becomes a worry in the headlines again. “If tensions with Iran cool somewhat, I would anticipate the focus shifting to the improving supply/demand balance, and we could see a strong move to the downside over the next several weeks,” said Kirk Howell, chief operating officer of SunGard’s energy and commodities business, SunGard Kiodex. Oil and Gold historically share a positive correlation.
It looks as if the next domino in the eurozone debt crisis will be Spain. That country is the fourth largest in the eurozone, and the economy is currently struggling with a conservative government. The yields on Spanish 10-year bonds are now more than 6.1 percent; when Italian bonds were at this same level last year, it alarmed the market. Rabobank strategist Lyn Graham-Taylor said, “We are back in full crisis mode.”
As mentioned in the Mid-Day Gold & Silver Market Report, the World Bank has selected its next president. Dartmouth College President Jim Yong Kim is the new president of the World Bank, in which he will be the first physician and Asian-American ever to lead this powerful organization.
At 4 p.m. (CDT), the APMEX precious metals spot prices were:
- Gold – $1,653.30 – Down $7.40.
- Silver - $31.54 – Up $0.09.
- Platinum - $1,577.10 – Down $9.80.
- Palladium - $654.80 – Up $6.50.
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