Closing Gold & Silver Market Report – 12/10/2010
At 4PM (CT) the APMEX precious metal prices were:
- Gold price - $1,385.50
- Silver price - $28.70
- Platinum price - $1,684.00
- Palladium price - $733.30
COMMENTARY: Platinum rebounded into positive territory during afternoon trading, but gold, silver and palladium continued to trade down in a tight range. The market has digested recent news stories, so until the next breaking headline, we should expect precious metals to trade sideways. Of course, precious metals react strongly to “tail risks”. A “tail risk” defined as a sudden or unexpected event with intended or unintended negative consequences.
Gold spot price was off $7.30 – Silver price was down 12 cents – Platinum price was up $4.10 – Palladium price was down $8.30
The long term outlook for gold remains bullish. Demand in China alone could drive up the market. China currently holds less than 3% of their foreign reserves in gold and they have stated their intentions to bring that up to the same level as Germany. Germany is over 50%. China is only 45% urbanized and yet they consume over 40% of the world commodities. Once they are at 65 % urbanized, how big will their appetite be?