Morning Gold & Silver Market Report – 4/25/2011
SILVER IS UP 5% –GOLD BREAKS NEW RECORD HIGHS – US silver futures neared the $50 mark before pulling back, as it moved even closer to its 1980 record high. Silver prices are rising as a result of weak US dollar and strong physical demand coming out of Asia. Gold continues to break into record territory on this very same news. "Everyone is buying," said a Hong Kong-based dealer. "There is stop-loss buying, as well as a good buying interest from China."
US oil climbed over $112 a barrel as violence continues to escalate in the Middle East. New skirmishes broke out in Syria and Libya, while post-election tensions erupted in the north of Nigeria. Senator john McCain, while on Sunday’s “Meet the Press”, characterized the Libyan situation as looking like a stalemate that needs further US intervention.
Reports out of China indicate China’s central bank is looking to set up sovereign funds to invest in oil and gold. China’s foreign exchange reserves have climbed rapidly up to $3.05 trillion dollars. Although China’s foreign reserves contain a high number of gold ounces, when compared with other countries, it is an extremely low percentage of their total reserves (only 1.7%). Most Western countries have over 60% of their foreign reserves in gold. If China were to move up to just 5%, it could have a major impact on gold prices.
At 8AM (CT) the APMEX precious metal prices were:
- Gold price - $1,514.50 (up $9.70)
- Silver price - $48.33 (up $2.21)
- Platinum price - $1,837.00 (up $17.30)
- Palladium price - $773.70 ( up $3.70)