Closing Gold & Silver Market Report – 3/14/2012
PLATINUM MAINTAINS LEAD OVER GOLD; TREASURIES FORETELL HIGHER RATES?
Since the Mid-Day Gold & Silver Market Report, prices for the four precious metals have continued to decline, with Gold in particular ending the day down more than $50. The dollar continued to gain strength today as it reacted to yesterday’s news from the Federal Reserve that interest rates would be kept at their current level and that there are no plans for more monetary easing. The one-ounce price for Platinum remained higher than the price for Gold after Platinum overtook Gold yesterday for the first time in almost six months.
This week, investor optimism about the U.S. economy has translated to a wave of sales in the Treasury market. There is speculation that this could be a sign that the country is about to enter a period of increased interest rates. The yield curve today was steeper than it’s been in almost six months, and selling continued despite an auction on 30-year bonds. Treasury strategist George Goncalves with Nomura Americas said, “I think this has really spooked people now. The auction didn’t go that well, and rates are at the upper end of the (day’s) range.” Meanwhile, debt has been issued by corporations at a record pace so far this year, and the pace of the current quarter is on track to surpass that of the first quarter of 2011 and be the biggest ever.
At 4:15 p.m. (CDT), the APMEX precious metals spot prices were:
- Gold - $1,645.10 – Down $50.10.
- Silver - $32.21 - Down $1.40.
- Platinum - $1,674.40 - Down $28.40.
- Palladium - $700.00 - Down $8.90.