Mid-Day Gold & Silver Market Report - 1/25/2012
GOLD PRICE EXCEEDS $1,700; SILVER CROSSES $33.00
Precious metal prices have all rebounded nicely from morning lows on the announcement from the U.S. Federal Reserve that the interest rates will not be raised until at least 2014. The Fed believes that the unemployment rate still needs to be controlled and anticipates that inflation will remain consistent with firm prices. The actions from the Federal Reserve shows they are concerned about a struggling economy, and unfortunately, this depresses the value of the dollar which had been rising compared to the euro.
Germany’s business confidence rose to a five month high more than predicted for the month of January. The numbers provide hope that one of Europe’s largest countries may be able to side step a recession. Andreas Rees of UniCredit Group in Munich said, “This is not only great news for Germany, but it also bodes well for the euro area."
Kenneth Rogoff, Professor at Harvard University, spoke to CNBC regarding the financial problems Europe is currently facing. Rogoff’s outlook for the eurozone seems to be pessimistic, as he stated, "They’re printing money but that doesn’t work. I think they’re printing money and buying time and that can work for a while although it leads to an uglier end-game. They are so far from having a solution in Europe. They need a new constitution. They need deep restructuring. This is not just about Greece. It’s way deeper than that."
At noon (CST), the APMEX precious metals spot prices were:
- Gold - $1,690.10 – Up $24.20.
- Silver - $32.91 – Up $0.86.
- Platinum - $1,579.20 – Up $25.80.
- Palladium - $694.00 – Up $12.40.