Mid-Day Gold & Silver Market Report – 12/19/2011
EXPERTS SAY GOLD’S FUTURE LOOKS PROMISING
Precious metals prices are down since this morning. There is worldwide concern with how Europe is handling its debt crisis, and with the recent death of North Korea’s leader Kim Jong Il and how this will affect the North Korean economy. British Foreign Secretary William Hague expressed hope that North Korea’s new leader Kim Jong Un, the youngest son of Kim Jong Il, can bring that country out of isolation. Hague said, “This could be a turning point for North Korea. We hope that their new leadership will recognize that engagement with the international community offers the best prospect of improving the lives of ordinary North Korean people.”
Although there has been a correction in Gold prices in the past few months, predictions for Gold to reach $2,000 to $2,500 per oz in 2012 are still present. The demand for the metal has continued to surge, and commodities strategist Sabine Schels said, “The negative outlook for sovereign debt coupled with easy monetary conditions in the eurozone, the U.S. and Japan, meant Gold would retain its safe-haven status while still offering comparatively strong returns. Gold will also benefit from a continued need for central banks in emerging markets to diversify their holdings.”
Fitch Ratings has acknowledged that it is too late for a comprehensive solution to be reached in Europe’s debt crisis. The agency reflected on the eurozone’s recent decisions by saying, “While acknowledging the extraordinary measures the ECB (European Central Bank) has adopted to provide liquidity to the European banking sector, its continued reluctance to countenance a similar degree of support to its sovereign shareholders undermines the efforts by euro area member states to put in place a credible financial firewall.” Emirates NBD wrote in a research note, “A week after the Brussels summit, the basis of the agreement reached there has begun to unravel even more quickly than is normally the case.”
At noon (CST), the APMEX precious metals prices were:
- Gold - $1,595.90 – Down $2.00.
- Silver - $28.99 – Down $0.70.
- Platinum - $1,411.20 – Down $7.10.
- Palladium - $618.60 – Down $7.90.