Mid-Day Gold & Silver Market Report – 3/26/2013

Brandi Brundidge

3/26/2013 12:46:00 PM

INVESTOR GOLD HOLDINGS DECREASE; HOUSING MARKET CONFIDENCE RISING

As the U.S. economy shows growth and stability from optimistic data, the amount of Gold investors are adding to their portfolios has dropped. Commodities research firm CPM Group said in a statement, “Present sentiment has reduced the urgency” to add Gold to portfolios after the price average rose to a record last year. The New York-based group reported investors purchased 38.7 million ounces of Gold in 2012, down 4.8 percent from 2011, as central banks increased their holding by 9.5 million ounces. CPM Managing Director Jeffrey Christian said the yellow metal is estimated to average $1,565 an ounce in 2013.

The housing market is recovering nicely as prices have risen, foreclosures have decreased and consumer confidence has greatly increased.  According to the CNBC All-America Economic Survey, 79 percent of Americans feel that owning a home is a vital part of the American dream.  More Americans are interested in owning rather than renting, up 4 points from March 2012 to 69 percent. “First-time homebuyers are the wildcard in the upcoming spring-summer home buying season,” Campbell Surveys Research Director Thomas Popik said. “We see strong first-time homebuyer traffic, but it's still not clear that the traffic will translate into increased purchases, because first-time homebuyers are dependent on low down payment financing, such as FHA mortgages.”

At 1:45 p.m. (EDT), the APMEX Precious Metals spot prices were:

• Gold, $1599.20, Down $7.80.
• Silver, $28.76, Down $0.13.
• Platinum, $1581.10, Down $3.80.
• Palladium, $762.50, Up $6.20.

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