Morning Gold & Silver Market Report – 4/22/2011
The record gold price is coming at a time when sovereign and global debt concerns are increasing. The U.S. dollar slid to its lowest level since August of 2008 on fears the Federal Reserve will be less than speedy in raising borrowing costs. According to Chae Un Soo of Korea Exchange Bank Futures Co., “The weak dollar is having the most influence on gold at the moment … which increasingly boosts safe-haven demand for gold.”
The global concern continues to center around the restructuring of the Greek debt. The restructuring would raise the likelihood of other European countries, such as Ireland and Portugal, needing a larger bailout than anticipated. The situation confirms that European officials misdiagnosed the Greek problem as a liquidity problem, which could be solved with loans, instead of an actual solvency problem.
The return to normal production at Toyota would seem to be a boost to the industrial metals, like platinum and palladium, however, it is not expected to happen until late 2011.
Markets are closed in observance of the Good Friday and Easter holidays.
At 4:15 PM (CT) April 21, 2011, the APMEX precious metals prices were:
- Gold price - $1508.50
- Silver price - $46.71
- Platinum price - $1816.60
- Palladium price - $771.80