Closing Gold & Silver Market Report – 3/12/2012
MARKETS SLIP ON CHINESE DEFICIT NEWS; THIRD GREEK BAILOUT HINTED
Precious metals prices have generally held steady since the Mid-Day Gold & Silver Market Report, with Gold, Silver, and Platinum experiencing slight gains since noon. Only Palladium dipped further in afternoon trading. Prices for precious metals and stocks were down today in response to data released by the General Administration of Customs that showed China had a deficit of $31.48 billion last month in comparison to its $27.28 billion surplus in January. In a note to clients, a TD Securities analyst said, “The deficit was four times the recent largest deficit and adds to fears of slowdown, leading the bank (People’s Bank of China) to weaken the yuan and lifting expectations of further near-term monetary easing as inflation has fallen back significantly.” China’s history as one of the world’s largest purchasers of Gold is critical when gauging demand for the yellow metal.
A former official with the International Monetary Fund said an IMF meeting scheduled for later this week will include discussion of a third Greek bailout. During an interview with CNBC today, John Lipsky, a former first deputy managing director of the IMF, said, “There is a program that has been discussed and is up for agreement and approval,” in response to a question about the possibility of another bailout for Greece. Lipsky also said that Europe would experience either a recession or flat economic growth in the future. That flat growth would be in line with the IMF’s current global forecast.
At 4:10 p.m. (CDT), the APMEX precious metals spot prices were:
- Gold - $1,702.00 – Down $10.50.
- Silver - $33.68 - Down $0.55.
- Platinum - $1,697.00 - Up $11.10.
- Palladium - $702.50 - Down $7.40.