Mid-Day Gold & Silver Market Report – 1/16/2012
GOLD WILL REACH $2,012 IN 2012, EDITOR SAYS
Since this morning’s Gold & Silver Market Report was released, precious metals prices have remained relatively steady. Unease in the eurozone continues to contribute to the safe-haven appeal of Gold. Byron King, editor of Hulbert Financial Digest, said, “Count me among the ones who believe we’ll see Gold priced over $2,012 per ounce in 2012. Yes, I know that the Gold price retreated in the last quarter of 2011. My explanation for that is that the dollar strengthened due to fears about the euro. But another angle on this is that a temporarily stronger dollar makes for a nice opportunity to buy precious metal assets on a relative dip. That is, Silver under $30 per ounce and Gold in the $1,600 range is cheap over the long term.”
Andrew Sentance, a former member of the Bank of England’s Monetary Policy Committee, said in an interview with CNBC, “There’s an over-expectation that the all-singing, all-dancing plan will be revealed,” regarding the markets’ expectations of a solution to the eurozone debt crisis. Sentance cites “fundamental issues” in the eurozone as causing problems in markets in the future. He added, “We shouldn’t be surprised that we have got a bit of market nervousness about the euro area.”
A U.S. drone strike is said to have killed the Pakistani Taliban leader, Hakimullah Mehsud. There was no official confirmation at this writing, and the Pakistani Taliban denied the rumor. However, many reports say that the terrorist indeed is dead. There was previously tension in Pakistan after the U.S. did not notify the Pakistani government when U.S. forces infiltrated a complex to assassinate Osama bin Laden. Geopolitical tensions historically have been one of the primary drivers of Gold’s price.
At noon (CST), the APMEX precious metals spot prices were:
- Gold - $1,645.30 – Up $13.50.
- Silver - $30.03 – Up $0.44.
- Platinum - $1,501.00 – Up $13.20.
- Palladium - $640.60 – Up $4.60.