Morning Gold & Silver Market Report – 2/24/2012
ECB PRESIDENT SEES HIGH UNCERTAINTY IN EUROZONE
Precious metals are trading down across the board this morning, while U.S. stock futures are gaining ahead of economic data to be released this morning. David Morrison, senior market strategist at GFT Markets, believes that recent actions by central banks of the world to increase liquidity will not only be supportive of stocks but also of precious metals. Sharing insight on investor sentiment toward the eurozone debt crisis, Morrison said, “Investors are also convinced that sufficient firewalls are in place to insulate other eurozone countries in the event of Greece defaulting -- something that is now viewed as highly probable.”
European Central Bank President Mario Draghi agrees that uncertainty remains high regarding the eurozone. Draghi also stated that economic recovery in the region is “proceeding very slowly and remains subject of downside risks.” He added, “There is no sign of inflationary tendencies in the euro area; quite the opposite. And if there should be any sign of future inflation, we have the instruments with which to absorb the liquidity again within a short space of time.”
Adding to rising tensions in the Middle East, Afghanistan is in uproar over Quran burnings that occurred on a U.S. base in that country. Protests are being staged, and 10 people have been killed with 50 more wounded in such protests. In Syria, demands are now being made by Western and Arab nations to allow aid deliveries to civilians affected by the uprising (and the resulting crackdown). The Syrian National Council, the opposition, said in a statement, “If the (Bashar al-Assad) regime fails to accept the terms of the political initiative outlined by the Arab League and end violence against citizens, the Friends of Syria should not constrain individual countries from aiding the Syrian opposition by means of military advisers, training, and provision of arms to defend themselves.”
At 8 a.m. (CST), the APMEX precious metals spot prices were:
- Gold - $1,779.70 – Down $5.60.
- Silver - $35.53 – Down $0.09.
- Platinum - $1,716.10 – Down $7.90.
- Palladium - $714.80 – Down $4.60.