Mid-Day Gold & Silver Market Report – 5/12/2011
Stephanie Chandler
5/12/2011 12:08:00 PM
PRECIOUS METALS FIGHT FOR RECOVERY
Precious metals started lower this morning on news of a stronger dollar but have picked up in mid-day trading with gold hovering back around $1,500. Silver is still bouncing around $34/$35 despite yesterday’s gain after news of the Shanghai Gold Exchange raising its own margin requirements for silver, just as CME did last week, making it more expensive to buy a silver contract in an attempt to manage volatility.
Stocks are down a slightly today despite the “positive” reports of the last week that first drove the stock markets up. Chief investment officer at Harris Private Bank, Jack Ablin, says, “Seemingly uncorrelated markets are moving in tandem, which suggests financial buyers are behind it and not necessarily fundamentals. In other words, hedge funds are selling stocks to make their commodity-margin calls, so there is a little of that,” adding that the market’s decline “really just underscore the economic weakness that is out there, or pending.”
At 12 PM (CT) the APMEX precious metals prices were:
- Gold price – $$1,498.90 (down $4.00)
- Silver price – $34.42 (down $1.18)
- Platinum price – $1,768.00 (down $10.80)
- Palladium price - $721.50 (down $2.10)
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
