Morning Gold & Silver Market Report – 5/3/2011
Peter LaTona
5/3/2011 8:14:00 AM
US PRIDE SURGES BUT MARKETS SETTLE BACK TO REALITY - As details of the events around the assault of Osama bin Laden’s compound unfold, US national pride remains high, but markets have settled back into reality. Stock futures are looking to open lower this morning. Gold prices are stabilizing on continued concerns with global inflation. Silver prices continue to be volatile. The CME Group just raised silver futures margins by another 11.6%, which could back cut back speculative silver trading. Silver prices did go down on the news.
The US dollar is up in morning trading and crude-oil futures have fallen as a result. Traders will be watching for any signs that the dollar can stabilize or will it continue to weaken as the week goes by. This will have an effect on oil prices and the price of gold as well.
Overseas, global equity markets were down in overnight trading. India’s central bank announced a larger than expected 50 basis point increase on Tuesday stating that the need to fight inflation outweighs short term growth. One year after the bail-out, Greece is still insisting they will not need to re-structure their debt. The financial markets are not so sure and many are betting that the euro zone crisis will worsen.
At 8AM (CT) the APMEX precious metal prices were:
- Gold price - $1,545.50 (down $13.20)
- Silver price - $43.69 (down $2.44)
- Platinum price - $1,866.50 (down $10.20)
- Palladium price - $778.00 (down $8.10)
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
