Morning Gold & Silver Market Report – 4/27/2011
Peter LaTona
4/27/2011 8:19:00 AM
INVESTORS AWAIT FED MEETING ANNOUNCEMENT – The US dollar drops again to nearly a three year low against a basket of six other major currencies. Gold and silver investors will be closely monitoring the Fed announcement today, at 11:30 AM (ET) and the first ever post-meeting press conference by a Fed Chairman. Mr. Bernanke will conduct this conference at 2:30PM (ET). Will the Fed continue down the road of easy money or will they began to signal inflation fighting measures? Easy monetary policies have driven the price of gold and silver up. “A lot of gold buyers will be waiting for signals from the Fed,” said Bernard Dahdah, a London-based analyst at Natixis Commodity Markets Ltd. Any indications “on currency and interest rates could highly affect the price of gold. For the next weeks we view gold as being driven by the dollar.”
The S&P cut Japan’s credit rating outlook from neutral to negative, as a result of the recent earthquakes and tsunami. A similar move was announced just weeks ago for the US credit rating outlook. Japan had already been struggling to come up with a deficit reduction plan before the earthquakes struck. Today’s downgrade is recognition that this task has become even more daunting.
At 8 AM (CT) the APMEX precious metal prices were:
- Gold price - $1,510.50 (up $6.00)
- Silver price - $45.68 (up 56 cents)
- Platinum price - $1,814.00 ( up $9.60)
- Palladium price - $754.10 (down $2.60)
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
