Morning Gold & Silver Market Report – 4/19/2012
EUROZONE CONCERNS WEIGH ON EURO, OIL, GOLD
Gold and Silver prices are down slightly this morning, thanks to falling oil prices and a stronger United States dollar. Earnings reports are giving U.S.A. stock futures a boost, with many major companies coming in ahead of expectations. David Morrison of GFT Markets wrote, “This news is overshadowing any concerns that investors have over Europe and the ambiguous economic data now emerging from the U.S. and China.” However, the boost in stock futures was lessened by disappointing jobless claims numbers, which remain at a four month high.
Spain and France held bond auctions this morning, with both countries hitting their goals. There is talk that France may be facing another credit downgrade just months after the country lost its AAA rating. The euro is taking a hit with all the concern in the eurozone now, which seems to be keeping the Gold price from moving higher.
There are concerns in Europe that bank balance sheets could contract by 2 trillion euros in the near future, potentially hampering growth and the economic recovery. The International Monetary Fund warned eurozone banks that such things could be a result of “synchronized and large scale deleveraging.” The IMF’s José Viñals said, “The key is to recapitalize, restructure, and resolve. … Such an external shock could combine with homegrown vulnerabilities and further undermine global stability.”
At 9 a.m. (EDT), the APMEX precious metals spot prices were:
- Gold - $1,637.50 - Down $2.70.
- Silver - $31.46 - Down $0.09.
- Platinum - $1,574.50 - Down $3.70.
- Palladium - $655.00 - Down $3.30.
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