Morning Gold & Silver Market Report – 10/16/2012

Ryan Schwimmer

10/16/2012 8:02:00 AM

EURO RALLIES ON NEWS OF POSSIBLE SPANISH BAILOUT

Precious Metals are regaining lost ground from yesterday as the euro strengthens against the dollar. News reports in Europe suggest that Spain is considering formally asking for assistance from the European Union’s bailout fund, which is causing the euro’s rally. Some analysts say that Spain’s prior refusal to formally request assistance is hindering the impact of the European Central Bank’s bond-buying plan. Jeremy Stretch of CIBC in London said, “The longer Spain attempts to ‘game the market,’ with talk of action, the lower the likely (post-ECB bond-buying) announcement bounce the euro is likely to see.”

Technical analysts still believe that $1,800 is the key price level for Gold. A CNBC chart suggests that if Gold can breach the $1,800 level, it could eventually pass $1,900. There are a number of key resistance levels Gold would have to break through, but if this happens, analysts are describing the rally that would follow as “fast.” BNP Paribas analyst Anne-Laure Tremblay said, “Gold rose sharply from mid-August onwards on expectations of a further round of quantitative easing in the U.S. Since mid-September, the upward trend (has) stalled alongside renewed concerns about weak economic growth, particularly in China. Uncertainty surrounding the eurozone sovereign debt crisis is also weighing on sentiment.”

At 9 a.m. (EDT), the APMEX Precious Metals spot prices were:

• Gold, $1,743.10, Up $6.00.
• Silver, $32.98, Up $0.22.
• Platinum, $1,641.30, Up $12.00.
• Palladium, $639.80, Up $6.20.

APMEX’s Account Managers now have extended hours and are here to serve you until 8 p.m. (EDT) Mondays through Thursdays! If you have any questions about investing in Precious Metals or would simply prefer to place your order by telephone, we are here to help.