Mid-Day Gold and Silver Market Report – 4/25/2012

Brandi Brundidge

4/25/2012 12:11:00 PM

CENTRAL BANKS STOCKPILING; IRAN SANCTIONS COULD DRIVE GOLD

The Gold price had not moved much thanks to economic factors in Europe and a lack of demand from India. However, lack of demand has not been the case with the world’s central banks. According to the World Gold Council, many countries are boosting their reserves of the precious metal. Mexico boosted its reserves by 16.8 tons to 122.6 tons last month, according to the International Monetary Fund.

Stocks opened higher this morning, even with negative news from the durable goods report. That report showed durable goods orders at a three year low. “Futures pared gains briefly, but most of the losses were short lived as investors focused on Apple,” said Edward Krudy of Reuters news service. The electronic giants’ shares increased 9.5 percent in pre market trading today.

Iran is feeling the pressure of sanctions from the United States and other countries around the world. The Wall Street Journal reported, “The sanctions are an attempt to force other countries to choose between buying oil from Iran or being blocked from any dealings with the U.S. economy.” This puts China in a tough position. China spent $21.7 billion on Iranian oil last year. The answer is simple: barter. Trading Gold and goods keeps the oil flowing and avoids the rules of the sanctions. As the sanctions continue, the demand for alternative payment for oil will possibly continue, as well.

At 1:06 p.m. (EDT), the APMEX precious metals spot prices were:

• Gold - $1,634.00 - Down $10.30.
• Silver - $30.30 - Down $0.52.
• Platinum - $1,545.30 - Up $1.80.
• Palladium - $657.60 - Down $9.20.

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