Closing Gold & Silver Market Report – 5/25/2011
FINANCIAL INSTABILITY SUPPORTS GOLD – Gold’s attractiveness as a store of wealth continued to grow today. The primary factors supporting gold are the ongoing debt concerns coming out of Greece and the ramifications they have on the rest of the euro zone. Analysts at VTB capital in London said in a note to clients, “We think that gold will remain well supported in the short term amid small-scale safe haven buying, and still in the absence of a substantial pick-up in physical demand.” The more speculative of the precious metals, silver, also saw modest gains today rising over 4%. Silver is still seen as an easier entry point for precious metal purchasing and with gold sustaining a price over $1500, some investors may be attracted to silver again. However, the Bombay Bullion Association said it expects India’s gold imports to reach a record level of 1,000 metric tons this year, assuming the monsoon season is good.
Also supporting the price of gold is a slightly lower dollar. It dropped today, against the euro, after reports that orders for long-lasting U.S. manufactured goods fell more than expected. Orders fell by 3.6% after rising 4.4% in March. The drop was greater than expected by 1.6%.
At 4:15 PM (CT) the APMEX precious metal prices were:
- Gold price - $1,527.30 (up $2.50)
- Silver price - $38.01 (up $1.80)
- Platinum price - $1,787.00 (up $23.50)
- Palladium price - $752.50 (up $13.30)
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