Mid – Day Gold & Silver Market Report – 1/14/2010
At 12PM (CT) the APMEX precious metal prices were:
- Gold price: $1,359.70
- Silver price: $28.31
- Platinum price: $1,81.80
- Palladium price: $792.50
COMMENTARY - Precious metal prices seem to be dropping dramatically today, which may be due in part to the news of Europe’s debt easing, the dollar rising and China raising its reserve requirement for lenders. There is also talk of rising mine production for gold. According to London-based GFMS, mine production increased by 94 million ounces last year alone, which followed a 6% increase in 2009 (which was the biggest gain in one year in more than a decade). GFMS is predicting another increase of more than 6% in the first half of 2011 alone. However, GFMS also says that in the longer term, the industry is mining lower grades and making fewer discoveries than in the previous years. They also pointed out that there is rising production from regions such as China and West Africa, making up for the lower production in South Africa and Peru (South Africa used to be the world’s largest producer but now falls behind China, Australia and the U.S.).
An index of consumer sentiment unexpectedly fell in January (from 74.5 to 72.7), according to a poll released by Thomson Reuters and the University of Michigan. Usually this would reflect higher gold prices, but the aforementioned seemingly optimistic news is outshining some of the more negative news that usually drives people to precious metals.
Gold spot price is down $28.80 for the day – Silver is down 98 cents – Platinum is down $6.40 – Palladium is down $22.00