Mid-Day Gold & Silver Market Report – 11/27/2012
U.S. CONSUMER CONFIDENCE LEVELS LIFTED
Precious Metals prices remain stable through the morning after the announcement that Greece is set to receive a bailout of close to 44 billion euros. HSBC analysts suggested that Gold’s price may be affected by the decision as the euro moves against the U.S. dollar, but little movement has been seen so far. “With much trading activity gravitating around the $1,750 an ounce level, we anticipate the expiration will be modestly price-positive for Gold. Beyond that, we believe Gold and Silver prices will tend toward consolidation, as investors await further developments on the U.S. fiscal-cliff negotiations,” the analysts said.
U.S. consumer confidence rose in November to its highest level since February 2008 as Americans are hopeful for the economy’s future. Consumer spending in the United States currently accounts for about 70 percent of economic activity, whis is below the 90 percent level that would indicate a healthier economy. Chintan Karnani, chief analyst at Insignia Consultants in New Delhi, discussed how the economy’s growth might impact Gold, stating, “My belief is that if the U.S. economy shows signs of sustained growth then Gold prices should fall. However, central bank buying and fear of more central bank buying at lower prices is preventing Gold prices from a big fall. Laggard short-term investors who were not able to invest in Gold at $1,700 are now waiting for a dip in Gold prices to invest. All these fundamental factors have kept Gold prices firm.”
At 1 p.m. (EST), the APMEX Precious Metals spot prices were:
- Gold, $1,746.80, Down $4.80.
- Silver, $34.11, Down $0.10.
- Platinum, $1,618.60, Up $6.60.
- Palladium, $668.60, Up $6.40.
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