Mid-Day Gold & Silver Report – 5/9/2012
Brandi Brundidge
5/9/2012 12:15:00 PM
AMERICA CAN LEARN FROM EURO MISTAKES; INVESTORS IGNORING POSITIVE GOLD NEWS?
The Precious Metals markets continued their downward trend today. The decrease in prices can be linked to two key factors. First, the economic and political issues around the globe have played a major role. Secondly, the United States dollar has risen in value to a point not seen since 2008. However, there are other factors being ignored that point to a bright future. Analysts with Sharps Pixley say Gold investors are “overreacting to bad news and ignoring good news,” such as more physical demand from India and a large increased demand in China.
There are many factors that point to the Federal Reserve using another round of monetary easing. A lackluster Labor Department report showed the weakest gains in the past six months. Europe’s financial issues are slowing the global economy. Also, the 10-year Treasury yields have fallen to almost record lows. Jan Hatzius at Goldman Sachs Group said, “In such an uncertain environment, taking out a bit more insurance still looks like the sensible choice for U.S. monetary policymakers.” When past rounds of monetary easing were conducted, the effect on the Precious Metals markets was positive.
The European economic crisis has been well-documented over the past few weeks. Looking at the situation, the United States has a chance to learn from the eurozone’s mistakes. The main reason is the difference between reacting and being proactive. Any time there are fiscal policies being changed overnight, it will have a major effect on everyone involved. “We shouldn’t be complacent. Our fiscal adjustment can be more gradual, but you have to start now,” said Simon Johnson, former chief economist for the International Monetary Fund.
At 1:05 p.m. (EDT), the APMEX Precious Metals spot prices were:
- Gold - $1592.50 - Down $13.00.
- Silver - $29.17 - Down $0.33.
- Platinum - $1499.50 - Down $9.80.
- Palladium - $615.10 - Down $8.70.
APMEX’s Account Managers now have extended hours Mondays through Thursdays and are here to serve you until 8 p.m. (EDT)! Or call us Fridays until 6 p.m. (EDT)! If you have any questions about investing in Precious Metals or simply would prefer to place your order by telephone, we are here to help.
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
