Mid-Day Gold & Silver Market Report - 4/26/2012

U.S.A. JOB MARKET INCONSISTENT; ECONOMIC CONFIDENCE IN EUROZONE DROPS  

The thought of further economic stimulus in the United States is frightening to some, but may be needed to ensure a boost to the financial system. Unsatisfactory jobless claims reported this morning has pushed the Gold price up and the U.S.A. dollar down, as they usually have a negative correlation with one another. James Cordier at OptionSellers.com said, “The job market is softening, and the Federal Reserve may be forced to look at some form of easing. Investors have started pricing that in.” Previous rounds of quantitative easing have been bullish for Gold.

An index of executive and consumer sentiment shows the economic confidence in the eurozone has fallen for the 17 nation euro area to 92.8 for the month of April from 94.5 in March. The spending cuts across the eurozone have affected both hiring and consumer confidence. Businesses in Europe are being affected by the debt crisis, with Germany’s largest bank reporting a decrease of 33 percent profit in the first quarter of 2012. 

Andrey Kryuchenkov at VTB Capital reflected on why one should hold onto Gold at this time. “There is little reason to sell Gold at the moment. Risk aversion is not where it should be for Gold to rally much, but at the same time sentiment is cautious at best.”

At 1:02 p.m. (EDT), the APMEX precious metals spot prices were:

• Gold - $1,659.40 - Up $16.10.
• Silver - $31.23 - Up $0.79.
• Platinum - $1,566.90 - Up $19.60.
• Palladium - $674.00 - Up $17.90.

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