Mid-Day Gold & Silver Market Report – 12/27/2011
IS EUROPE FOCUSING ON RIGHT PRIORITIES?
The Gold price is lower as the eurozone crisis worsens instead of improves. Li Ning at Shanghai CIFCO Futures said, “Gold prices may be under pressure from a strengthening dollar in the next few months as the brightened economic prospects in the United States are likely to further boost the dollar index. Although Gold’s outlook remains supported in the medium to long term by central banks’ Gold buying, among other factors, risks such as rising bond yields in Italy will send more safe-haven flow to the dollar and pressure Gold.”
The European Banking Authority has set a June 2012 deadline for European banks to raise more than 114 billion euros in fresh capital. The orders have been put into place to assure that European banks will have enough cash on hand after the price drop in European sovereign bonds. The attempt to accomplish this task will assist with a strong European financial crisis recovery. Ralph Silva at SRN said, “I don't think they’re the canary right now; I think they’re actually the grenade because they are the ones that are going to fix this or make it worse. We need to force them to do the right things, but right now we’re forcing them to do the wrong things for the economy and the right things for themselves.”
In the United States, the housing market has been struggling since 2008. There had been recent expectations that the housing market was recovering. However, data released this morning indicated that U.S. single-family home prices dropped significantly in October. The U.S. is focusing on improving the housing market to strengthen the overall economy. Omer Esiner at Commonwealth Foreign Exchange said, “In light of the more positive housing numbers we’ve seen in the last week or so, this might be a bit of a disappointment.”
At noon (CST), the APMEX precious metals spot prices were:
- Gold - $1,592.70 – Down $14.30.
- Silver - $28.83 – Down $0.32.
- Platinum - $1,436.00 – Up $3.80.
- Palladium - $670.00 – Down $2.80.