Morning Gold & Silver Market Report – 3/18/2011
At 8AM (CT) the APMEX precious metal prices were:
- Gold price - $1,419.80
- Silver price - $35.14
- Platinum price - $1,718.30
- Palladium price - $728.00
COMMENTARY:Gold prices are moving up this morning due to the escalating risks in Libya and North Africa, which is also driving up oil prices. The fear of risk from this region is overcoming the news that China’s central bank announced on Friday they are raising lender reserve requirements another 50 basis points. This is the third move this year and the sixth since November, as China continues to monitor inflation.
The G-7 announced yesterday, that on March 18 they would intervene in the currency markets to weaken the Yen. It would appear this is stated as a one day event, but they also stated “we will monitor exchange rates closely and will cooperate as appropriate.” The wild currency fluctuations seen since the earthquake are unprecedented in the eyes of many analysts and it is driving investors to precious metals.
The United Nations approved military action against Libya and there are reports of Egypt sending arms to the rebels. There has been a no-fly zone imposed over Libya and “all necessary measures” will be taken to protect civilians from the Libyan army.
On a less serious note, Turkey, the world’s fourth largest gold consumer is expected to increase gold imports by 50% in 2011. Investors appear to be buying in anticipation of higher prices and because the Turkish banks cut interest rates.
Gold spot price is up $14.60 – Silver price is up 82 cents – Platinum price is up $10.40 – Palladium spot price is up $10.20