Mid-Day Gold & Silver Market Report, 05/22/2012
Brandi Brundidge
5/22/2012 12:22:00 PM
GOLD PRICE SLIDES; HOME SALES FLY
Gold continues to have trouble gaining traction in mid day trading, and the Platinum market absorbed news of yet another production disruption in South Africa. While the euro is off last week’s four month low, it is still putting pressure on Gold prices. There is some hope that the upcoming summit could provide some solution to the European debt crisis. “Having failed at $1,600 yesterday, the market has looked for the direction of least resistance, and that is currently down,” said Ole Hansen at Saxo Bank. “The EU summit could get quite interesting behind closed doors, given (Germany Chancellor Angela) Merkel's statement yesterday that she would not hesitate to disagree with (French President Francois) Hollande.”
The National Association of Realtors said existing home sales rose to the highest rate in nearly two years in April. This increase is seen as hopeful sign of economic recovery. Along with the increase in sales has been a reduction in foreclosures, which have pushed home prices higher. “The housing market is showing some signs of life,” said Gary Thayer at Wells Fargo Advisors in St. Louis.
The housing data also is being seen as a positive for the U.S.A. stock market, taking the focus off the global economy. “The housing data has to be considered good news because some kind of stabilization in housing would be an important positive, or at least the removal of a big negative, for the economy,” said Ken Tower at Quantitative Analysis Service.
At 1 p.m. (EDT), the APMEX Precious Metals spot prices were:
- Gold, $1,584.10, Down $6.10.
- Silver, $28.49, Up $0.08.
- Platinum, $1,461.80, Down $1.70.
- Palladium, $617.40, Up $4.60.
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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
