Mid-Day Gold & Silver Market Report 2/24/2012
SILVER PRICE UP 7.1% IN WEEK; U.S. CONSUMER CONFIDENCE UP
The Gold price is slightly down today as it tries to sustain this week’s gain. LGT Capital Management analyst Bayram Dincer said investors were moving into Gold on the back of expectations for further monetary easing in the United States and the eurozone. “It is really monetary (policy) expectations that are making the investment rationale for Gold,” he said. Silver performed well this week with the price increasing by 7.1 percent. “There is key support around $33.60 from the trend line off the December low,” said ScotiaMocatta in a note. “We are bullish so long as we remain above the trend line. The next target is $35.68, the October high.”
Two issues are contributing to higher oil prices in the U.S.: concerns on whether Iran will move forward with its nuclear program, and better growth expectations in the U.S. Treasury Secretary Timothy Geithner commented on rising oil prices and what long-term approach will be best to handle the situation. He said, “There’s no quick fix to this, no short-term fix. The best strategy for the country is to continue to make some long-term investments, to expand production in the United States, to reduce our dependence on foreign oil, to encourage Americans to use more efficient clean sources of energy, to encourage Americans to be more efficient in how they use energy.”
The essential element in growing a strong economic foundation is to address the housing sector, which Geithner acknowledged will be done in the future. The consumer sentiment index rose slightly in February to 75.3 from lasts month’s 75. Confidence among consumers has been boosted by an increase in job opportunities and a brighter outlook for the economy. Millan Mulraine at TD Securities said, “The strong gains in household confidence is quite encouraging. However, we are somewhat concerned about the sustainability of this rebound, as higher gasoline prices could play an important role in dampening confidence toward the economy.”
At noon (CST), the APMEX precious metals spot prices were:
- Gold - $1,774.70 – Down $10.60.
- Silver - $35.35 – Down $0.27.
- Platinum - $1,715.50 – Down $8.50.
- Palladium - $711.00 – Down $8.40.