Mid-Day Gold & Silver Market Report – 9/24/2012
EUROZONE NOT IN AGREEMENT; STOCKS AND METALS PRICES FALL
The latest news concerning Europe’s struggle to see eye to eye on correcting the region’s debt crisis has caused U.S. stocks to fall today. The turmoil between eurozone leaders and reports that indicate a slowdown in the Chinese and German economies have extended losses for the S&P 500 for the third straight session. “There’s no magic bullet to this European crisis,” said Hayes Miller, who helps oversee about $48 billion as the Boston-based head of asset allocation in North America at Baring Asset Management Inc. “The politicians have been trying to put on a face of unity. Yet there are no easy solutions. You’re going to have an economic growth rate that’s going to be quite poor over the next year. It’s going to be a challenging environment.”
Profit-taking from recent highs and a stronger dollar have caused Precious Metals prices to dip today. “Double-digit gains for the quarter are going to be attractive for people to book their gains,” said Nick Trevethan, senior commodities strategist at Australia & New Zealand Banking Group Ltd. “With prices up near the highs for the year on Sept. 21, and the market seemingly not able to push through $1,800, it’s fair to say some people are cashing in.”
The Gold/Silver ratio, which determines the number of Silver ounces it would take to buy one ounce of Gold, is currently 51.89 and is expected to tighten in the near future. Though the outlook for Gold remains positive, technical analysts at ScotiaMocatta said they expect Silver to shorten the gap between itself and the yellow metal. "While the ratio has been consolidating the past week, the larger trend remains bearish, with an initial target at the March low of 47.67," analysts said.
At 1:25 p.m. (EDT), the APMEX Precious Metals spot prices were:
- Gold, $1,764.00, Down $13.00
- Silver, $33.99, Down $0.66
- Platinum, $1,623.50, Down $15.10
- Palladium, $647.00, Down$24.50
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