Closing Gold & Silver Market Report – 3/26/2012
NOTED INVESTOR EMBRACING GOLD AGAIN ON FED CHAIRMAN’S COMMENTS
Precious metals prices have been on the rise throughout afternoon trading on the heels of the potential for further monetary easing that Federal Reserve Chairman Ben Bernanke spoke of earlier today. That news led noted investor Dennis Gartman change his previously held position and re-enter the American Gold market. He said, “Sometimes you get lucky. … Dr. Bernanke got me a little lucky this morning. … If you’d asked people last week, you’d think QE3 was off the table and broken on the floor.” However, Gartman said he believes the re-introduction of QE3 would help send Gold prices higher.
Economic hope remains on the horizon, though, as the call for continuing monetary policy stimulus and European symmetry on the eurozone’s debt crises have created some hope for stability. The hopes are bolstered especially by the news that German Chancellor Angela Merkel has softened her stance and looks to be supporting the temporary and permanent euro-area rescue funds to help contain European debt concerns. Chief market strategist Stephen Wood said, “Bernanke made it clear that while the Fed is not going to be revving the engine anytime soon, they are going to keep their foot on the gas. … At the same time, the Europeans appear to be more serious about addressing risks. They’ve addressed shorter-term liquidity, but solvency remains an issue.”
Middle Eastern news continues to simmer on the back burner. Syria has responded to U.N. special envoy Kofi Annan. The proposal is backed by Western powers, though no deadline is set, the bloodshed will not drag on indefinitely. The economic sanctions being imposed on Iran starting to effect Iranian citizens in a negative way, with inflation a huge concern. Ayatollah Ali Khamenei’s plan calls for more domestic production to offset those inflation fears. He said, “If we manage to boost our domestic production, a large part of enemies’ efforts will no doubt be unsuccessful. … If we lift domestic production, we will solve the issues of inflation and unemployment, and our economy will be reinforced.”
At 4:15 p.m. (CDT), the APMEX precious metals spot prices were:
- Gold - $1,690.70 – Up $26.80.
- Silver - $32.87 – Up $0.55.
- Platinum - $1,651.30 – Up $22.40.
- Palladium - $670.70 – Up $9.80.
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