Morning Gold & Silver Market Report – 3/13/2012
Ryan Schwimmer
3/13/2012 8:01:00 AM
GOLD WAITING ON FED CHAIRMAN’S WORDS; SPAIN’S PROBLEMS WORSE THAN GREECE’S
Gold has seen mixed trading overnight and was sitting lower than yesterday’s closing price this morning. The Federal Open Market Committee (FOMC) meeting later today isn’t expected to produce any substantial news. The likelihood of further monetary easing by the Federal Reserve has taken a hit with the best six-month period of job gains in nearly six years. Nic Brown of Natixis Commodity Markets Ltd. said, “The FOMC will be important, after the market interpreted (Fed Chairman Ben) Bernanke’s recent silence on it (easing) as an indication that it was unlikely to happen. The Gold market will be hanging on his every word tonight.”
Tensions in the Middle East have risen after a U.S. soldier was accused in the murders of 16 civilians in Afghanistan. The events have drawn the attention of the Taliban, who threatened to behead U.S. soldiers in retaliation. Though American and NATO officials have deemed the killings the work of a “rogue” soldier, many Afghanis are having trouble seeing it that way. U.S. President Barack Obama said that this occurrence should not be a reason for a rapid exit from the country by the U.S. military, and he stressed that the planned drawdown set for 2014 is still in place.
As mentioned in Monday morning’s Market Report, Spain is drawing attention of analysts now that the situation in Greece seems to be resolved. Sony Kapoor, managing director at Re-Define, said, “Spain has very large downside risks, and it needs to tread very carefully. Spain is in a very fragile situation. Its problems are significantly worse than Greece’s.” Spain has the eurozone’s highest unemployment rate (more than 22 percent), and many suspect that the country’s debt actually is worse than reported.
At 8 a.m. (CDT), the APMEX precious metals spot prices were:
- Gold - $1,688.70 – Down $11.90.
- Silver - $33.33 – Down $0.11.
- Platinum - $1,696.20 – Down $0.50.
- Palladium - $701.00 – Down $3.20.
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
