Closing Gold & Silver Market Report – 1/17/2012
Brandi Brundidge
1/17/2012 4:00:00 PM
GOLD RALLIES; U.S. RECOVERY OUTLOOK POSITIVE
Precious metals prices ended today on a positive note. Gold’s rally today was based on a weakening dollar and Europe’s financial and credit issues. Jim Steel with HSBC said, “The market reacted to an increase in risk tolerance. Gold was also riding the coattails of sharp increases for U.S. stocks and oil.” George Gero of RBC Capital Markets shared his viewpoint on Europe, saying, “The downgrades of the eurozone countries means fiscal stimulus is not far behind.”
Most of the focus has been on credit rating agency Standard & Poor’s (S&P) and its decision to cut the credit ratings of nine eurozone countries. The downgrades came as no surprise, as speculation had been in the news for a while. Steen Jakobsen at Saxo Bank said, “Effectively, S&P did what it was supposed to do: It ignored the ‘PowerPoint presentation’ from the EU and looked only at the accounts. The accounts speak clearly for themselves: no progress, no real plans.”
The outlook is optimistic for growth in the U.S. economy, which is pushing the price of Silver up. Silver is used heavily in electronic devices. Investors became aware of the success in debt auctions by Spain and Greece. This relieved the uncertainty that the eurozone fiscal crisis may affect recovery in the U.S.
At 4 p.m. (CST), the APMEX precious metals spot prices were:
- Gold - $1,653.30 – Up $21.50.
- Silver - $30.12 – Up $0.53.
- Platinum - $1,525.40 – Up $37.60.
- Palladium - $652.10 – Up $16.10.
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
