Morning Gold & Silver Market Report – 5/13/2011
Timothy Oakes
5/13/2011 8:14:00 AM
EUROPEAN COUNTRIES GDP RISE, U.S. CPI RISES
The rise in food and fuel prices, domestically, is causing an overall rise in cost of living. The CPI (Consumer Price Index) increased 0.4 percent in April, following a 0.5 percent increase in March. The core measure results, which exclude food and energy costs, increased 0.2 percent, according to economists estimates. However, tempering inflation concerns for the time being are improved job prospects. The Federal Reserve predicts this to be temporary. Ben Bernanke’s comment, “Measures of underlying inflation, though having increased modestly in recent months, remain subdued, and longer-term inflation expectations have remained stable,” look to support this “transitory” period.
The euro zone GDP (Gross Domestic Product) has impressive results for the first quarter. However, that is due largely in part due to Germany and France exceeding expected results. The concern facing the European Central Bank is that, for all the impressive results of Germany, France and Austria, there are a number of countries that are expected to have very poor results. Spain seems to have corrected itself, having its highest growth since 2008. This positive news has caused the U.S. Dollar to weaken.
Gold and silver rose on the news of the weaker dollar. "Today economic data out of the euro zone has been positive, which supported stock markets and the euro, and the dollar weakened, which is supportive for commodities in general, and in particular the precious metals," said Peter Fertig, a consultant at Quantitative Commodity Research.
At 8:03 AM (CT) the APMEX precious metals prices were:
- Gold price - $1508.50 (up $0.20)
- Silver price - $35.45 (up $0.55)
- Platinum price - $1777.00 (up $5.00)
- Palladium price - $721.50 (up $0.70)
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
