Mid-Day Gold & Silver Market Report – 3/27/2012
GOLD DIPS ON FED REMARKS; STOCKS DOWN ON CONSUMER CONFIDENCE, HOME PRICE DATA
Since the posting of the Morning Gold & Silver Market Report, the Gold price has seen a dip, pushed lower by remarks from U.S. Federal Reserve Chairman Ben Bernanke and less-than-rosy data on consumer confidence and home prices. The Fed chairman essentially assured that U.S. interest rates will stay low, while also indicating that economic assistance is still needed. Many see this as a hint that another round of quantitative easing could be on the Fed’s agenda. In a note to clients, Commerzbank analysts stated, “The prospect of further injections of liquidity by the U.S. Federal Reserve is unequivocally positive for Gold, for this makes the U.S. dollar less attractive.” Prices for Silver, Platinum, and Palladium fell in morning trading, as well.
Information released today shows that consumer confidence dwindled in the U.S. in March. According to the report from the Conference Board, inflation expectations among consumers reached a 10-month high this month, as well. In response to the report, the U.S. stock market struggled to hang on to morning gains, and European stocks ended down. Peter Boockvar, an equity strategist with Millar Tabak, said that although consumer confidence remained steady for a second month above an index reading of 70, it is “still below the 10-year average of 79.2.”
According to a closely monitored index, January marked a fifth month for falling home prices in the U.S. According to the S&P/Case-Shiller 20-city composite index, home prices for January fell 0.8 percent. In the past 12 months, there has been a 3.8 percent fall in home prices in this country. The housing data contributed to the struggle facing U.S. stocks this morning.
At 12:01 p.m. (CST), the APMEX precious metals spot prices were:
- Gold - $1,685.80 – Down $1.30.
- Silver - $32.80 - Unchanged.
- Platinum - $1,658.40 - Up $10.70.
- Palladium - $663.50 - Down $6.30.
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