Closing Gold & Silver Market Report – 5/12/2011
Geoffrey Varner
5/12/2011 4:36:00 PM
THE DOLLAR PUSHES AND PULLS ON COMMODITIES – The US dollar turned lower against other major currencies Thursday, giving gold room to go positive. Silver had fallen nearly 3% early in the day but shaved some of its losses as the dollar weakened. As we have seen these past few days, the ebb and flow of the dollar has significant impact on the price of silver and gold. An inflating dollar, generally, will lift the price of gold as each dollar loses its purchasing power. This is the reason many advisors point to gold as a safe-haven investment.
There is some concern, that as China continues to raise interest rates to combat inflation, that the counties demand for precious metals may ease. If they were to get inflation under control, gold’s appeal would be decreased. What has not decreased is Central Bank purchases of gold. The World Gold Council has released its latest figures which show significant purchases by Central Banks, but no sales. It seems clear that the Central Banks of the world feel the need to support their fragile economies with gold.
At 4:15 PM (CT) the APMEX precious metals prices were:
- Gold price – $1,508.00 (Up $5.10)
- Silver price – $34.71 (down $0.90)
- Platinum price – $1,774.30 (down $4.50)
- Palladium price - $722.90 (Up $3.50)
We have a diverse selection of 2011 gold products available from around the world.
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
