Mid-Day Gold & Silver Report – 5/2/2012
Brandi Brundidge
5/2/2012 12:17:00 PM
GOLD MINING PRODUCES BIG PROFIT; BALANCE A KEY ISSUE IN U.S. BUDGET
Gold prices are down due to the U.S.A. dollar gaining and the Federal Reserve backing off talk of more monetary easing. However, the spot price is continuing steady as it did for most of April. There are also reports that show the physical demand for gold is strong. The world’s largest producer of gold reported a 2.8% profit increase in the first quarter of 2012. Barrick Gold Corp. out of Toronto reports an 18% increase in sales. Also, the U.S. mint reported selling 10,000 ounces of gold yesterday, which is half the amount they sold for all of April.
Weak manufacturing reports out of Europe are having a global affect. Even the strongest of the European nations are feeling the economic downturn in the region. Germany’s data shows manufacturing down for a second straight month. “The debt crisis in Europe is weighing on growth and it’s rippling across the world," said Peter Dixon at Commerzbank. With all of the latest economic concerns in Europe pressure is building on political leaders to step in.
The United States constant budget issues continue. There have been signs of improvement in the economy however, worries are still abundant. Bob Baur, chief global economist for Principal Global Investors believes that the outlook is good overall. “Households are in much better shape and companies have improved their balance sheets dramatically. It’s the government that needs to deleverage,” he says. Baur also added, “Deleveraging had begun at the state level, but had yet to reach central government.”
At 1:00 p.m. (EDT), the APMEX precious metals spot prices were:
• Gold - $1654.70 - Down $8.70
• Silver - $30.61 - Down $0.34
• Platinum - $1565.70 - Down $7.60
• Palladium - $670.70 - Up $11.80
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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
