DOZEN COUNTRIES HIKE GOLD RESERVES IN MARCH, STATS SHOW
Gold’s price moved slightly once the Federal Reserve’s statement was released at 12:30 p.m. (EDT). The statement said economic growth is moderate, and housing is lingering at a depressed level. However, Gold regained strength and is now stable. The International Monetary Fund reported its latest statistics, which show that at least 12 countries have increased their total amount of Gold reserves in March. A few of the countries include Mexico (which increased its Gold holdings the most with 16.81 tons), Russia, Turkey, Argentina, Kazakhstan and Ukraine. Central Banks purchased no less than 58 tons of Gold in March, which, if this purchasing trend continues, might suggest acceleration in their increase of Gold holdings for the year.
Europe is facing difficult times now with an unpredictable presidential election under way in France and more debt than the world knows what to do with. Mohamed El-Erian at Pimco said, “A diverse set of economic circumstances around the globe are forcing investors to take an equally diverse approach to investing.”
India, Asia’s third largest economy, had its sovereign credit outlook lowered to negative by Standard & Poor’s credit rating agency. The decision resulted from rising concerns over a decline in growth and current account deficits. Today’s action by S&P “is a negative move and further solidifies the macroeconomic risks India is facing,” said Rajeev Malik, senior economist at CLSA Asia-Pacific Markets in Singapore. “Coming from the most conservative of the rating agencies, it’s a wake-up call for the government to do something meaningful soon.”
At 5 p.m. (EDT), the APMEX precious metals spot prices were:
- Gold - $1,644.70 - Up $0.40.
- Silver - $30.76 - Down $0.06.
- Platinum - $1,553.00 - Up $5.90.
- Palladium - $664.60 - Down $2.20.
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