Mid-Day Gold & Silver Market Report – 4/15/2011
FED OFFICIALS DISAGREE ON ACCELERATING INFLATION
Federal Reserve policymakers are in disagreement on how best to tackle the problem of accelerating inflation. After news of a 0.5% increase in the Consumer Price Index, a key inflationary measure, some central bankers are still advocating an easy-money policy. Annualizing this 0.5% increase would indicate a 6% rate of inflation in consumer prices. Gold and silver prices seem to be moving inversely to the weakening U.S. dollar, and are holding at or near record and recent highs, respectively. While the Fed is choosing to look at the “core” CPI numbers (which doesn’t include food and energy costs) and standing pat on monetary policy, the European Central bank is likely to raise its interest-rate target again due to an annualized 2.7% growth rate in inflation.
Also supporting gold and silver prices are the events abroad. “The bullion market has found support one day from economic uncertainty and changes in risk sentiment, and on another day by high oil and food prices, and on yet another by sovereign risk and fiscal concerns,” explains Jim Steel of HSBC.
At 12PM (CT) the APMEX precious metals spot prices were:
- Gold – $1,487.30 (up $13.90 on the day)
- Silver – $42.72 (up $0.99)
- Platinum – $1,793.50 (down $1.10)
- Palladium - $769.50 (down $5.80)