Morning Gold & Silver Market Report – 1/13/2012
U.S. TRADE DEFICIT WIDEST IN SIX MONTHS
Precious metals are trading mostly lower this morning, largely due to a stronger U.S. dollar. Despite the day-to-day currency fluctuations that have been affecting the price of Gold recently, Bloomberg reports that “Gold traders are the most bullish in two months.” Investors are buying U.S. bullion coins at the quickest pace in more than two years, and China is importing more Gold than ever. One analyst said, “The thing that’s caught people’s minds is the massive increase in Chinese buying. Gold has demonstrated time and time again its ability to hold purchasing power.”
U.S. stock futures are down, and economists will be re-evaluating their fourth-quarter Gross Domestic Product estimates after data was released this morning. The data show that U.S. exports declined in November, and imports rose. The trade deficit is at its widest in six months and is much higher than most economists had expected.
An Italian bond sale was not as successful as investors hoped, falling well below the success of a Spanish auction. Italy met the planned amount of 4.75 billion euros, but hopes were that the sale would bring in twice as much, as Spain’s auction had done the day before. Rabobank’s Richard McGuire said, “This will serve to dampen some of the markets’ enthusiasm in the wake of yesterday’s Spanish auction. … It doesn’t defeat the notion that the European Central Bank extraordinary liquidity provisioning will support peripheral debt, but it perhaps tempers expectations as to what degree these operations will support.”
At 8 a.m. (CST), the APMEX precious metals spot prices were:
- Gold - $1,639.60 – Down $9.10.
- Silver - $29.80 – Down $0.40.
- Platinum - $1,482.20 – Down $16.90.
- Palladium - $628.60 – Down $13.60.