Morning Gold & Silver Market Report – 4/26/2011
HOME PRICES DROP AGAIN – The Case-Shiller report came out this morning and home prices fell for the 8th straight month in February. Although this drop exceeded expectations by 0.3%, it is still indicative of a housing market struggling to recover.
Gold and silver are recovering this morning from earlier losses in the Asian markets. The London market was closed on Monday, so trading volumes were thin. The opening of the London market today should provide indications as to the short term direction of gold and silver.
Greece’s budget deficit went up 143% more than projected. The culprit is lower-than-expected government revenues as a result of a recession, that is worse than expected. Greek government bonds will come under added pressure and no doubt fuel rumors that debt re-structuring will be needed.
Syria has stepped up violence against government protestors even after a weekend where 80 protestors were killed. The Syrian government appears to prefer force rather than reform.
In the US, the market is anxiously awaiting Wednesday’s Fed announcement and the first ever post-announcement press conference by a Fed Chairman.The Fed’s dilemma is whether to risk the economic recovery by initiating inflation fighting measures, or keep on the current path. The futures markets are up, which indicates a bet on the continuation on the current path.
At 8AM (CT) the APMEX precious metal prices were:
- Gold price - $1,504.70 (down $5.40)
- Silver price - $45.83 (down $1.39)
- Platinum price - $1,812.50 (down $14.60)
- Palladium price - $754.50 (down $7.30)