Mid-Day Gold & Silver Market Report – 3/9/2012
Ryan Schwimmer
3/9/2012 12:15:00 PM
CHINA’S GROWTH SLOWS; GREECE TO REQUIRE THIRD BAILOUT?
Gold has reversed course during midday trading, moving off the lows triggered by the better-than-expected U.S. jobs report. The domino effect of events starts with that report. More jobs gives speculators the sense that there will be higher demand for oil, which caused the price of “black gold” to increase, and Gold enjoyed the benefits of its positive correlation with oil. Also contributing to the rally that most commodities are having is news of an Israeli airstrike in Gaza that killed a militant leader, and many assumed that has something to do with Iran.
China’s factory and retail sales slowed in February, adding to a 20-month low in the inflation rate. This might give Chinese policymakers room to further loosen monetary policy to support that country’s slowing growth. Jeremy Friessen at Societe Generale in Hong Kong said, “A lower headline inflation number means that the central bank can continue to be very accommodative, which means printing more money.” He added, “The more money it prints versus the Gold out there, the more it should raise the value of Gold verses that money.” China is on the verge of dethroning India as the world’s largest bullion buyer.
Just as the dust appears to be settling on the current round of debt swaps for Greece, fears have arisen that a third rescue package may be needed due to a lack of growth prospects for the shrinking Greek economy. In a Reuters interview, Jean-Claude Juncker, president of the Eurogroup, said, “You can’t really exclude that, although we should not have as a starting assumption that a third program will be needed.” Greece has been in a deep recession for five years. During the last quarter of 2011, its economy shrank by 7 percent.
At 12:14 p.m. (CST), the APMEX precious metals spot prices were:
- Gold - $1,713.30 – Up $13.60.
- Silver - $34.34 – Up $0.49.
- Platinum - $1,684.70 – Up $27.00.
- Palladium - $710.10 – Up $10.70.
APMEX Market Reports provide our readers with a review of spot price activity and some of the factors that may be affecting the market for Precious Metals. While the information is obtained from sources we believe to be reliable, we do not guarantee its accuracy or its completeness and we encourage you to conduct your own investigation prior to making any decision based on the information. The Market Reports are not intended as a comprehensive discussion and there may be other factors affecting the financial marketplace. These Market Reports are provided for informational purposes only and do not constitute a recommendation by APMEX to hold, purchase or sell any Precious Metal product. All orders, purchases and sales, if any, are subject to the terms of the User Agreement and other applicable policies
