Gold and Silver are following U.S. stock futures this morning, as all are experiencing slight losses. Minutes of the latest Federal Open Market Committee meeting will be released later today. In a research note, analysts at Bank of America Merrill Lynch wrote, “We will look for the discussion around the outlook  and the risks to see whether greater optimism is starting to enter into the staff forecast.” The main thing investors are looking for are clues to another round of quantitative easing, which historically has been supportive for the Gold price.

Richard Cookson, chief investment officer at Citi Private Bank, said the beginning of 2012 “looks eerily similar to last year for a lot of the same reasons.” He added, “This isn’t a normal market recovery, if you look at the state of central bank balance sheets … it’s a bit like being in an abusive relationship where the abnormal becomes the normal.” He also warned that Europe is starting 2012 much like 2011, and it’s no secret that 2011 wasn’t exactly a great year for the eurozone.

Platinum and Palladium are enjoying slight gains this morning after  reports were released showing auto sales were at a five-year high  in March. The two metals are important components in the production of new cars, and oftentimes prices follow news from the automobile industry.

At 8 a.m. (CDT), the APMEX precious metals spot prices were:

• Gold – $1,676.70 – Down $2.50.
• Silver - $32.93 – Down $0.22.

Gold remained in positive territory in afternoon trading. Loan Smith at Knight Capital Europe Ltd. said a rally in Gold could take off central banks indicate further monetary action. “If the Fed reinstitutes quantitative easing measures later in the year, coupled with rising fiscal deficits and currency debasement among countries in the developed world, then  Gold may continue to hold an underlying bid,” Smith wrote in an e-mail.

The  jewelers’ strike in India is officially over, with Indian government officials stating they will delay the duty tax on nonbranded Gold jewelry. As the news spread, traders in Mumbai and other parts of the nation began to reopen their stores. “The tax on unbranded jewelry was affecting smaller businesses. It would ensure that several craftsmen would lose their daily earnings and result in large-scale unemployment for several people in the country,” bullion trader Rameshbhai Sanghavi said. He added that deferring the tax would help employment in the country to a large extent, though Gold imports had slipped further in March.

The U.N./Arab League peace envoy confirmed to the United Nations that Syrian troops would not be entering towns and that a pullout of heavy weapons and a troops would be under way. Diplomats verified today that Syria has agreed to meet the April 10 deadline for the initial peace plan. Turkish Foreign Minister Ahmet Davutoglu compared the current condition in Syria with the situation in Bosnia in the 1990s. Davutoglu said, “In the case of Bosnia, the international community was too slow, therefore we lost many people. In the case of  Syria, we have to act without delay.”

At 4 p.m. (CDT), the APMEX precious metals spot prices were:

• Gold - $1,678.80 – Up $7.40.
• Silver - $33.03 – Up $.50.

Gold futures declined  largely on concerns about events in India and Turkey. Jewelry stores in India are on strike against recent government taxes on Gold, which has reduced Gold imports from Turkey. The weaker jewelry demand is not currently offset by investment demand, so there is downward pressure on pricing.

The  eurozone’s jobless rate reached its highest  in 15 years, with more the 17 million people out of work. The unemployment rate in the 17 nation eurozone rose to 10.8 percent. This highlights the human costs when governments are forced to make drastic spending cuts. There are those who think these spending cuts are too much too soon, but the European Commission seeks to restore investor confidence by aggressively getting deficits under control. Still, this leaves millions of Europeans looking for work with an economy sliding into recession.

Speaking on CNBC this morning, Marc Faber (otherwise known as “Dr. Doom”), predicted that investors -- particularly the wealthy -- will  lose about half their total wealth  in the next few years as a result of global government debt problems that have central banks printing money at record rates. “Somewhere down the line, we will have a massive wealth destruction that usually happens either through very high inflation or through social unrest or credit market collapse,” he said. “Maybe all of it will happen but at different times.” Faber has long been bullish on Gold and other hard assets such as real estate. He also expects stocks to go up in the short term, as they benefit from the printing of money, as well.

At 8 a.m. (CDT), the APMEX precious metals spot prices were:

• Gold - $1,669.50 – Down $1.90.
• Silver - $32.52 – Down $0.02.

Precious metals and U.S. stock futures received a boost this morning, mainly due to a  boost of a different kind. A statement from eurozone finance ministers this morning read, “All together, the euro area is mobilizing an overall firewall of approximately 800 billion euros, more than 1 trillion dollars,” to help protect against the spread of the debt crisis. This move boosted the euro, causing metals to follow suit.

Echoing the sentiments of many, Sam Chandan of Chandan Economics said, “An extraordinarily low interest rate environment  has become our drug of choice (in the U.S.). But the potential impact on the economy over the long run, in terms of how it distorts the markets, is potentially quite toxic. (It is) something we got to back away from.”

The ongoing civil oppression in Syria took a new twist today, as  Iran has helped the country ship oil to China, providing an $80 million benefit to the government of Syrian President Bashar al-Assad. This is in direct defiance against Western sanctions, with which Iran is familiar. Syria and Iran seem to be strengthening their alliance at a time when Western powers have attempted to contain issues regarding those Middle Eastern countries.

At 8 a.m. (CDT), the APMEX precious metals spot prices were:

• Gold – $1,666.70 – Up $12.50.
• Silver - $32.52 – Up $0.48.
• Platinum - $1,645.20 – Up $17.90.
• Palladium - $653.20 – Up $7.70.

Since the posting of the Mid-Day Gold & Silver Market Report, the Gold price has climbed back into positive territory. Yesterday saw the price end down during today’s trading, the precious metal has fluctuated between small losses and gains. Adam Klopfenstein, market strategist with Archer Financial, said  Gold has been following riskier investments recently  and displaying the behavior of a “classic commodity,” tracking U.S. equities and other commodities. However, a note by Commerzbank analysts said that Gold-backed ETFs have not seen any “significant outflows” lately and that Gold’s price drop is a result of profit-taking by short-term investors and not due to any actions by long-term investors.

Federal Reserve Chairman Ben Bernanke, speaking today in a lecture to undergraduates at George Washington University, said that  central banks should actively try to work to defuse future financial threats. During the lecture, Bernanke said that financial stability should no longer be viewed as monetary policy’s “junior partner.” Bernanke said, “As much as possible, central banks and other regulators should try to anticipate and defuse threats to financial stability, and mitigate the effects when a crisis occurs.” In the past, the Federal Reserve has lowered interest rates to near zero and engaged in programs of monetary easing to protect the U.S. economy in times of financial stress, and there has been a great deal of speculation that the Fed eventually will engage in another round of easing in response to the U.S. economy’s continued sluggish performance.

At 4 p.m. (CDT), the APMEX precious metals spot prices were:

• Gold - $1,662.900 – Up $2.90.
• Silver - $32.29 - Up $0.41.

Oil prices have declined, and the dollar is gaining over growing fears revolving around Spain’s less-than-stellar budget. Austerity measures are proving quite unpopular in Spain. The physical demand for Gold remains high in China, but the jewelers’ strike in India continued into a 13th day, which has hindered demand in the world’s top Gold-buying country. Nic Brown of Natixis said, “In the near-term, there is substantial support still coming out of China. Until Chinese investors have a solid alternative to precious metal, it’s likely that demand coming out of China will  remain very strong. … If you see a significant decline in Indian demand for Gold, that is a major negative for the Gold market.”

The strike among India’s jewelers has generated several concerns. This is the first Indian jewelers’ strike in almost seven years. Many are concerned about which precious metals are to be taxed and at what rates, but there are hopes a compromise can be reached. A poll of retailers, jewelers and brokers indicates that Gold imports could drop about 30 percent, and India could lose its position as the top buyer to China by the end of the year. This could cause a loss of revenue of $1 million. “If the excise duty is corrected, the trade will be happy,” said Bhargav Vaidya, a director at the Bombay Bullion Association, one of the largest trade groups representing the industry in India. “The strike will not be indefinite, and customers will not go high and dry during wedding season.”

Some Spanish citizens have risen up against austerity measures imposed upon them, with strikes in the nation affecting public transportation and factory production. However, it is business as usual in a good portion of the nation, as the populace is hoping to    avoid a Greek-like default. Spain’s economy minister said, “Regardless of whether it (the strike) is considered a success or failure, the government is not going to alter the reform one jot.”

At noon (CDT), the APMEX precious metals spot prices were:

• Gold - $1,652.20 – Down $7.80.
• Silver - $32.02 – Up $0.14.

Gold and Silver are enjoying slight gains this morning after choppy overnight trading. U.S. stock futures are down, due in part to a disappointing jobless claims report. After seasonal adjustments,  last week’s jobless claims were revised upward  by 4.6 percent, slightly mitigating this week’s drop of 5,000. A positive move for the dollar seems to be limiting Gold’s upward movement for the moment. A final reading in the gross domestic product report showed that the U.S. economy expanded at a 3 percent rate, slower than expected.

The first budget from Spain’s new government is due today, and the  focus is mainly on austerity  for the struggling country. Strategists at RBS wrote, “While the government is trying to contain debt, unemployment is rising, workers are increasingly leaving the country, and consumers are struggling.”

Leaders from the top emerging economies in the world (Brazil, Russia, India, China and South Africa, or BRICS)  scolded Western economies regarding loose monetary policies  that are hampering the global economic recovery. Such policy “brings enormous trade advantages to developed countries, and results in unfair obstacles for other countries,” the leaders said.

At 8 a.m. (CDT), the APMEX precious metals spot prices were:

• Gold - $1,663.30 – Up $3.90.
• Silver - $32.09 – Up $0.21.