Morning Gold & Silver Market Report – 3/27/2012
FED CHAIRMAN’S COMMENTS SUPPORTING GOLD, HAMPERING STOCKS
Gold is gaining some ground this morning, continuing to be boosted by yesterday’s comments by Federal Reserve Chairman Ben Bernanke. Bayram Dincer of LGT Capital Management said, “The possibility of accommodative monetary policy if certain conditions, such as employment, do not improve is a favorable environment for Gold. More dollar liquidity from the Fed would decrease the value of the dollar, and in this case Gold is considered as a valuable currency substitute.”
U.S. stock futures are also feeling the effects of Bernanke’s statements, and are relatively flat. Typically, quantitative easing (QE) has been supportive for stocks, due to the show of support from the Fed, though QE also has been supportive for Gold due to the inflationary pressures it brings. Ilya Spivak of FXCM said that the door is open “for a correction (in stocks) as yesterday’s moves begin to appear overdone upon closer examination.”
Though the geopolitical issues around the world today seem to have minimal effect on the markets currently, these issues historically have been supportive for the safe-haven appeal of Gold. Reports out of Syria suggest that the country has accepted a cease-fire drawn up by U.N. and Arab League special envoy Kofi Annan. However, Syrian troops have crossed the Lebanese border to continue fighting with rebels who had escaped the fighting.
At 8:06 a.m. (CDT), the APMEX precious metals spot prices were:
- Gold - $1,695.40 – Up $8.10.
- Silver - $33.11 – Up $0.32.
- Platinum - $1,664.80 – Up $17.20.
- Palladium - $668.00 – Down $1.80.