Morning Gold & Silver Market Report – 12/27/2011
CHINESE GOVERNMENT CRACKS DOWN ON GOLD EXCHANGES
Gold, Silver, and U.S. stock futures are starting the week lower as the euro rises slightly against the dollar. Key economic reports expected to be released today include an index from the housing sector and a consumer confidence index. Although futures are down this morning, GFT’s Boris Schlossberg said, “The market anticipates an improvement in consumer sentiment, and given the better labor-data statistics, that forecast could turn out to be true and may (boost) risk sentiment slightly at the start of the day.”
Gold demand in China has caused the Chinese central bank to step in. Most gold exchanges are now banned, with the exception of the Shanghai Gold Exchange and the Shanghai Futures Exchange. The People’s Bank of China claims that illegal activity and lax management caused risks to emerge, and the bank is now leading a team to clean up problems. Chinese citizens will still be able to buy the Gold they covet, however through limited means.
The situation in Syria has escalated to a point where the Arab League is stepping in. Thousands of people have died, many of them civilians. Arab League Ambassador Mohamed El-Fateh El-Naserey said, “We are trying to avoid international intervention; we’re trying to have an exit from this crisis through reconciliation and dialog.” Regarding the monitors who will be observing the accord aimed at ending the fighting, he said, “We will see if they are really free to go wherever they want and can talk with the people.”
At 8 a.m. (CST), the APMEX precious metals spot prices were:
- Gold - $1,598.00 – Down $9.00.
- Silver - $28.87 – Down $0.27.
- Platinum - $1,433.00 – Up $1.80.
- Palladium - $657.50 – Down $9.70.