Mid-Day Gold & Silver Market Report – 4/17/2012
IMF HAS POSITIVE OUTLOOK; SPAIN HAVING ISSUES
Precious metals prices have been on the move this morning, with swings in pricing and now moving higher. The prevailing fear continues to encase the uncertainty revolving Spain’s debt issues. In a note to its investors, VTB Capital said, “Many still doubt that Madrid can implement the necessary budget cuts without the situation spiraling out of proportion in an economy that is already suffering from high unemployment and negative growth rates. … Jitters over the debt crisis in the monetary union are far from over, and this could be potentially Gold-supportive in the second quarter.”
Spain is not only having its own debt issues that it needs to overcome but an unexpected seizure of an asset by Argentina has left the country quite angry. Argentina has announced plans to seize YPF, a subsidiary of Spanish energy giant Repsol. The move is lauded by Argentines but has caught a number of foreign governments by surprise. Spanish industry minister Jose Manuel Soria said, “With this attitude, this hostility from the Argentine authorities, there will be consequences that we'll see over the next few days. They will be in the diplomatic field, the industrial field, and on energy. … Argentina has shot itself in the foot.” Privatization of oil production is viewed as a key element with foreign powers, like China and Venezuela which have also privatized their oil production.
The International Monetary Fund raised its global outlook on the moderate boost provided by recent U.S. economic improvements. However there remain concerns regarding the sustainability of those improvements. In a summary of the report, the IMF wrote, “Improved activity in the United States during the second half of 2011 and better policies in the euro area in response to its deepening economic crisis have reduced the threat of a sharp global slowdown. … Weak recovery will likely resume in the major advanced economies, and activity is expected to remain relatively solid in most emerging and developing economies. However, the recent improvements are very fragile.”
At noon p.m. (CDT), the APMEX precious metals spot prices were:
- Gold - $1,653.60 – Up $3.40.
- Silver - $31.80 – Up $0.37.
- Platinum - $1,582.70 – Up $7.90.
- Palladium - $663.30 – Up $11.60.
APMEX’s Account Managers now have extended hours and are here to serve you until 7 p.m. (CDT) Mondays through Thursdays, and until 5 p.m. (CDT) on Fridays! If you have any questions about investing in precious metals or would simply prefer to place your order by telephone, we are here to help.