Mid-Day Gold & Silver Market Report – 4/10/13

Nicholas Wilsey

4/10/2013 12:03:00 PM

GOLD PRICE REACTS TO CYPRUS SELLOFF, FED MINUTES

The Gold price has fallen due to Cyprus’ intention to sell excess Gold reserves to help finance their economic bailout. It is not a large enough amount of Gold to affect the price on its own; however, it does open the door to speculations of other countries’ potential plans to deal with economic issues.  “A bearish interpretation would be, where Cyprus leads, others will follow. If those others were Spain or especially Italy, they have very large reserves. But there are good reasons to think in this, as in other aspects, Cyprus is a special case,” Macquarie Metals Analyst Matthew Turner said.

The monthly Federal Open Market Committee meeting minutes were released early this morning, though the contents were hardly newsworthy. The report showed a growing number of reserve members questioning continued monetary easing. “In particular, participants pointed to possible risks to the stability of the financial system, the functioning of particular financial markets, the smooth withdrawal of monetary accommodation when it eventually becomes appropriate, and the Federal Reserve's net income,” the March meeting minutes state. However, these minutes were compiled before the release of the latest employment report, which showed a slowdown in new job creation. Since the beginning of the easing program, the Fed has made it clear the program will continue until employment reports show major improvement.

At 1:00 pm (EDT), the APMEX precious metals spot prices were:

• Gold, $1560.20, Down $28.00.
• Silver, $27.68, Down $0.31.
• Platinum, $1529.00, Down $25.10.
• Palladium, $722.10, Down $11.90.

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