Morning Gold & Silver Market Report – 4/20/2012
FRENCH ELECTION: WILL NEXT PRESIDENT PLAY NICE WITH GERMANY?
Gold has extended gains from yesterday as investors are focused on a pivotal election in France. Incumbent President Nicolas Sarkozy’s chances of being re-elected are dwindling, and many investors are afraid that his replacement could further hurt France’s troubled economy. While Sarkozy and German Chancellor Angela Merkel, leaders of the top two economies in the eurozone, worked together during the recent crisis, it is expected that Sarkozy’s replacement will not be so willing to work with Merkel.
The Gold price is tracking the value of the euro, which was boosted this morning by positive economic data out of Germany. BNP Paribas analyst Anne-Laure Tremblay said, “Sentiment for Gold is currently mixed, with lower perceived prospects for quantitative easing in the United States counterbalanced by ongoing safe haven demand, particularly in a context of renewed European sovereign debt concerns.” Citing another factor that is keeping the Gold price from climbing, she said, “Subdued physical demand from India in recent weeks is likely also weighing on the price.”
U.S.A. Defense Secretary Leon Panetta has accused China of helping North Korea with its ballistic missile program. This would be in direct defiance of United Nations regulations, and China has denied any involvement. China and North Korea are allies, though the former did condemn the latter’s failed missile launch last week, at least publicly.
At 9 a.m. (EDT), the APMEX precious metals spot prices were:
- Gold - $1,644.00 - Up $2.10.
- Silver - $31.84 - Down $0.01.
- Platinum - $1,579.00 - Up $2.00.
- Palladium - $667.60 - Up $3.40.
APMEX’S Account Managers now have extended hours and are here to serve you until 8 p.m. (EDT) Mondays through Thursdays, and until 6 p.m. (EDT) on Fridays! If you have any questions about investing in precious metals or would simply prefer to place you order by telephone, we are here to help.