Closing Gold & Silver Market Report – 5/26/2011
CHINA’S GOLD DEMAND TO RISE 22% THREE YEARS - China is rapidly closing in on India, as the world’s largest consumer of gold. Although China is one of the leading producers of gold, they cannot produce near enough to satisfy their appetite. Gold production should reach 400 tonnes by 2014 with a gain of 19%, but still the demand will be for 700 tonnes.
During the first quarter, US homes sold at a 27% discount while in the process of foreclosure. Total purchases of distressed homes fell less than half the amount sold at its peak two years ago. “While this is probably helping to keep home prices relatively stable, it is also delaying the housing recovery,” Chief Executive Officer James Saccacio said in the statement.
The euro took another tumble today as Greek debt continues to scare the market. The US Dollar went up putting pressure on gold to go down, which it did only slightly, as it still found support for its safe haven value. "Market sentiment towards gold has become more positive over the past few days, as illustrated by the resumption of net inflows into ETFs," said BNP Paribas analyst Anne-Laure Tremblay. "I believe that the gold price will trend higher from its current levels in 2011," she said, adding the other key drivers of the gold price this year were still present.
At 4PM (CT) the APMEX precious metal prices were:
- Gold price - $1,520.90 (down $7.30)
- Silver price - $37.31 - (down 42 cents)
- Platinum price - $1,772.80 (down $8.00)
- Palladium price - $757.50 (up $6.20).