Mid-Day Gold & Silver Market Report 3/26/2012
U.S. ECONOMY DRAWING MIXED VIEWS
Gold’s price is up more than 1 percent today thanks to a stronger euro and comments from Federal Reserve Chairman Ben Bernanke, who is calling for faster U.S. economic growth. “I think it (Gold’s price rose) on the back of Bernanke’s comments, which people have taken to mean that further funding might be required,” said Simon Weeks, head of precious metals at Scotia Mocatta. “I think people have taken that to mean that Gold is still going to be in demand.”
Although many are seeing positive signs of a slow U.S. recovery, Steve Forbes of Forbes Media said he believes the progress isn’t as dynamic as it should be and claims there’s a lot of skepticism with the time it is taking. On the other hand, former Treasury Secretary Larry Summers has a bit more confidence in the U.S. “As winter turned to spring in 2010 and 2011, many observers thought they detected evidence that the economy had decisively turned, only to be disappointed a few months later. Several considerations suggest that this time may be different. Employment growth has been running well ahead of population growth for some time now,” Summers said.
The strikes in India seem to have paid off for jewelers and consumers. India decided to cut the import tax on Gold by 7.5 percent, supposedly to assist the troubled industry. However, the duty for Silver imports will remain unchanged. Nick Holland of Gold Fields commented on China and India, which together account for 42 percent of the demand for Gold. “Those are two economies that are likely to grow at a significant pace, certainly relative to the West,” Holland said. “They have a strong affinity for Gold, and they also have an increasing number of the population who are being urbanized. Of the extra income they get, some will find its way into Gold.”
At noon (CDT), the APMEX precious metals spot prices were:
- Gold - $1,685.20 – Up $21.30.
- Silver - $32.83 – Up $0.51.
- Platinum - $1,646.60 – Up $17.70.
- Palladium - $670.80 – Up $9.90.
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