Closing Gold & Silver Market Report – 3/15/2012
BARGAIN HUNTING LIFTS GOLD PRICE; OIL RELEASE REPORT ‘INACCURATE’
The Gold price has continued to climb since the Mid-Day Gold & Silver Market Report. Prices have trended downward this week as investors sold off Gold in response to Federal Reserve meeting Tuesday. However, the metal bounced back today as a result of purchases by bargain hunters, which some analysts think could continue to provide support for higher prices. According to Jeff Wright, a precious metals analyst with Global Hunter Securities, the Gold market is “finding support from both physical purchasing and interest at the ETF level.” Although Gold has seen a pullback recently, Wright said, “In the longer term, Gold is expected to continue rising with continued negative real interest rates, initial signs of inflation and gradual weakening of the U.S. dollar.” Prices for Silver, Platinum, and Palladium were up in afternoon trading, as well.
“Inaccurate” is the term the White House is using to describe a report released earlier in the day indicating Britain and the United States had agreed on a joint release of government-controlled oil reserves. Despite this, oil prices, which dropped by $1 per barrel on the earlier report, stayed flat after the White House update. Meanwhile, there was a major development in the West’s ongoing conflict with Iran over that country’s nuclear program, as the Society for Worldwide Interbank Financial Telecommunication (SWIFT) announced today that it was severing ties with banks in Iran. Although sales of oil by Iran to other countries will continue, the loss of SWIFT will make it harder for Iran to get paid for that oil. Stephen Schork, an independent oil analyst and trader, said, “They’re going to sell because they have to. Whether they get paid through SWIFT or with barges filled with Gold, they’re going to do it.”
At 4:09 p.m. (CDT), the APMEX precious metals spot prices were:
- Gold - $1,659.10 – Up $14.70.
- Silver - $32.54 - Up $0.32.
- Platinum - $1,684.90 - Up $8.60.
- Palladium - $707.50 - Up $10.10.