The Gold price has continued to climb since the  Mid-Day Gold & Silver Market Report. Prices have trended downward this week as investors sold off Gold in response to Federal Reserve meeting Tuesday. However, the metal bounced back today as a result of purchases by bargain hunters, which some analysts think could continue to provide support for higher prices. According to Jeff Wright, a precious metals analyst with Global Hunter Securities, the Gold market is “finding support from both physical purchasing and interest at the ETF level.” Although Gold has seen a pullback recently, Wright said, “In the longer term,  Gold is expected to continue rising  with continued negative real interest rates, initial signs of inflation and gradual weakening of the U.S. dollar.” Prices for Silver, Platinum, and Palladium were up in afternoon trading, as well.

“Inaccurate” is the term the White House is using to  describe a report released earlier in the dayindicating Britain and the United States had agreed on a joint release of government-controlled oil reserves. Despite this, oil prices, which dropped by $1 per barrel on the earlier report, stayed flat after the White House update. Meanwhile, there was a major development in the West’s ongoing conflict with Iran over that country’s nuclear program, as the Society for Worldwide Interbank Financial Telecommunication (SWIFT) announced today that it was severing ties with banks in Iran. Although sales of oil by Iran to other countries will continue, the loss of SWIFT will make it harder for Iran to get paid for that oil. Stephen Schork, an independent oil analyst and trader, said, “They’re going to sell because they have to. Whether they get paid through SWIFT or with barges filled with Gold, they’re going to do it.”

At 4:09 p.m. (CDT), the APMEX precious metals spot prices were:

• Gold - $1,659.10 – Up $14.70.
• Silver - $32.54 - Up $0.32.

Gold has continued to hold onto modest opening gains, as the drop from previous sessions is attracting bargain hunters. The metal may be vulnerable to more selling, if easing expectations continue to fade and the dollar continues to strengthen. In a note to its investors, Commerzbank wrote, “As the price falls below important support levels, we may see further selling on the part of money managers. We regard this development as positive for the Gold price in the medium term, because the exit of ‘weak hands’ paves the way for the next price rise.” William Adams, at metals-data provider FastMarkets, supported that position, saying, “There is a risk of further weakness, but equally we would not be surprised if bargain hunters start to provide support. And if prices start to move higher, then follow-through buying may well follow.” 

In an effort to fight rising domestic gasoline prices, Britain has decided to cooperate with the United States in a  release of strategic oil stocks. “We regularly consult with the British on energy issues, and any discussion that we had was in that context. We will continue to monitor the situation and consult with them and others,” said an official in the Obama administration. Rising oil prices have begun to have a global effect, and they are hitting U.S. citizens especially hard at the gas pump. Those increases are causing preliminary fears of upsetting the fragile global economic recovery.

National Mining Corp. has announced that it has found Gold deposits in southern Ethiopia that may produce at least  10 metric tons a year, which would nearly double its national output. National Mining’s Chief Executive Melaku Beza said the Okote site in Ethiopia’s Oromia region has more than 550 tons of Gold, of which 73 tons may be ready for extraction within 24 months. The company, which is closely held by Saudi Arabian billionaire Mohammed al-Amoudi, plans to invest $150 million in the initial phase of production. This is certainly a nice Gold find from a supply perspective, but it will obviously take time to refine and make its way into the market.

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

• Gold - $1,658.20 – Up $13.80.
• Silver - $32.61 – Up $0.39.

U.S. stock futures rose after the weekly report on jobless claims was released. Although  last week’s claims number was revised slightly upward, the drop this week of 14,000 matches a four-year low.Also, core wholesale prices in the U.S.  climbed by just 0.2 percent. This key inflation indicator was up 3.3 percent over the past year, which is actually the smallest 12-month change in nearly two years. The positive economic reports pushed precious metals prices slightly lower.

Syria continues to be supported by Iran and continues to wreak havoc on its citizens in trying to quell any Arab Spring-like event. However, other nations including Italy and Saudi Arabia continue to remove their ambassadors from the country. Syrian President Bashar al-Assad continues to stage pro-Assad rallies. Syrian media play up the situation as getting better, while the U.N. Security Council continues to report horror stories. One man that made his way to Turkey, who wanted to remain anonymous, said, “The  (Syrian) soldiers are taking the women and children and lining them up  in front of them as a human shield. They are setting shops and homes on fire.”

In an interesting tidbit, it was revealed that European taxpayers ended up carrying the bulk of the burden from Greece’s debt restructuring,  thanks to careful planning that delayed the restructuring  and allowed banks to dump most of their exposure to Greek debt. When Greece received its first bailout from the International Monetary Fund in 2010, eurozone banks held about $68 billion of the country’s debt, and about $51 billion of that would have been lost had Greece defaulted. Over the next 15 months, however, banks suddenly carried much less than half of their original load of Greek debt. Raoul Ruparel of Open Europe said, “That is a horrible deal for the EU taxpayer. The longer we wait for these restructurings, the worse the deal gets for the public. There’s an ongoing risk transfer from the banks to the taxpayers.”

At 8:16 a.m. (CDT), the APMEX precious metals spot prices were:

• Gold - $1,645.90 – Up $2.00.
• Silver - $32.26 – Up $0.05.

Since the Mid-Day Gold & Silver Market Report, prices for the four precious metals have continued to decline,  with Gold in particular ending the day down more than $50. The dollar continued to gain strength today as it reacted to yesterday’s news from the Federal Reserve that interest rates would be kept at their current level and that there are no plans for more monetary easing. The one-ounce price for Platinum remained higher than the price for Gold after Platinum overtook Gold yesterday for the first time in almost six months.

This week, investor optimism about the U.S. economy has translated to a wave of sales in the Treasury market. There is speculation that this could be a sign that the country is about to enter a  period of increased interest rates. The yield curve today was steeper than it’s been in almost six months, and selling continued despite an auction on 30-year bonds. Treasury strategist George Goncalves with Nomura Americas said, “I think this has really spooked people now. The auction didn’t go that well, and rates are at the upper end of the (day’s) range.”  Meanwhile, debt has been issued by corporations at a record pace so far this year, and the pace of the current quarter is on track to surpass that of the first quarter of 2011 and be the biggest ever.

At 4:15 p.m. (CDT), the APMEX precious metals spot prices were:

• Gold - $1,645.10 – Down $50.10.
• Silver - $32.21 - Down $1.40.
• Platinum - $1,674.40 - Down $28.40.
• Palladium - $700.00 - Down $8.90.

Precious metals prices have reacted to Tuesday’s meeting of the Federal Open Market Committee (FOMC). Late Tuesday afternoon, prices began to drop. Prices leveled a bit this morning but have started falling over the course of this morning. Saxo Bank’s Ole Hansen said, “We saw the 10-year (U.S.) government bond yield breaking out of the holding pattern it’s been trading in for the last five or six months. That’s one of the precursors to a change in rate sentiment. … Knowing how dovish the Fed — especially (Federal Reserve Chairman Ben) Bernanke — is, for him to say we’re seeing growth is surprising. So, removal of quantitative easing and a higher rates forecast is not good for Gold in the near term.” But not all analysts hold the same view, with some saying the pricing actually makes Gold a good, supported value. Standard Bank’s Walter de Wet said, “As far as real interest rates are concerned, we believe that they will remain low for some time to come. The futures market agrees. Even the Fed has indicated that they will keep rates very low for some time. … This should keep real interest rates in negative territory. At the same time, economic conditions may indicate that the Fed funds rate is too low. Such a mismatch has in the past  proved quite bullish for Gold.”

The messages from the FOMC were perceived as a mixed bag by a number of investors and analysts. Though the message maintained the position previously stated during Bernanke’s trip to Congress, some investors and analysts maintain a third round of quantitative easting is not entirely off the table. Chief economist Stephen Stanley said, “The way the statement was crafted was to keep their options open. … What they’re trying to tell us is ‘Hey, don’t change your policy outlook, because we’re not ready to say things have changed enough.’” Bill Hampel reinforced that opinion when he said, “They want to keep their powder dry in case they need to take further action later in the year. … In case they need to do a QE3, this is giving them leeway to do it if they think it’s necessary later in the year.”

The price of  goods imported into the U.S. rose less than forecast  in February, paced by the biggest drop in food costs in three years. While economist had projected a 0.6 percent increase, the actual 0.4 percent gain amounts to little change from January’s numbers, according to the Labor Department. “Once you look past the rise in oil, import prices are pretty tame on the back of the dollar strength we’ve been seeing recently,” said Joshua Shapiro at Maria Fiorini Ramirez Inc. in New York. “This points toward pretty-well-controlled nonenergy costs.”

At 12:01 p.m. (CDT), the APMEX precious metals spot prices were:

• Gold - $1,649.00 – Down $46.20.
• Silver - $32.32 – Down $1.30.

After today’s Federal Reserve meeting today came and went without any hints of future quantitative easing, the price of Gold declined significantly in afternoon trading,  ending the day below $1,700 per ounce. Gold historically moves opposite the U.S. dollar, and with the dollar up after today’s Fed meeting, Gold experienced a corresponding drop. However, the Fed indicated during the meeting that the recent jump in energy costs is likely to increase inflation, which plays to Gold’s draw as a safe haven for investors. The Platinum price also was down in afternoon trading, while Silver and Palladium prices were up slightly at this writing.

The Federal Reserve’s Federal Open Market Committee (FOMC) meeting  took place this afternoon, and again there were few indications of any Fed plans for another round of quantitative easing. According to the central bank, the U.S. economy is undergoing moderate expansion while still facing serious downside risks. Officials with the Fed said they expect rates will stay near zero for at least the next two years, citing continued high unemployment in the United States. After details from the FOMC meeting were released, precious metals prices dipped in afternoon trading, while Wall Street stocks held gains, and the dollar strengthened against the euro.

At 4:01 p.m. (CDT), the APMEX precious metals spot prices were:

• Gold - $1,675.30 – Down $25.50.
• Silver - $33.47 - Up $0.03.

Platinum appears to be leading the midday charge, as its price climbed above the Gold price for the first time in six months.  Platinum’s price increase  has been propelled by supply and production issues in South Africa. Nic Brown at Natixis said, “We have been ragingly bullish on Platinum this year. We perhaps got in a tiny bit too early, but this is one we have been plugging very strongly.” Brown said, “We think the fundamentals of Platinum are much better than Gold’s fundamentals.” He said industrial demand for Platinum from the European auto market was likely to be lackluster, but jewelry demand in other consuming nations such as Japan and China could offset that. The Federal Reserve meeting today is expected to provide more clarity in the outlook for Gold. In a separate interview, Brown said, “The FOMC (Federal Open Market Committee) will be important, after the market interpreted Bernanke’s recent silence on QE3 as an indication that it was unlikely to happen. … The  Gold market will be hanging on his every word  tonight.”

The  dollar continues to strengthen  against the euro and other currencies as investors wait for what is expected to be a more upbeat statement from today’s Federal Reserve meeting. A new report showed U.S. retail sales were up in February, giving additional reason for the Fed to back away from quantitative easing. “If the statement from the FOMC acknowledges the recent strength in the U.S. economy, it would suggest that Fed officials are less likely to consider any additional accommodative policy moves and as such could push the dollar higher across the board,” said Boris Schlossberg at GFT. A rising dollar historically indicates a drop in Gold prices, which generally sparks increased consumer demand.

Opposition activists claim a  government crackdown is responsible for Syrian forces killing dozens of people  near a mosque in the city of Idlib. Rebel forces also are reported to have killed at least 10 troops in an ambush in the same area. Fighting also has been reported in the eastern city of Deir al-Zor and Homs, as the uprising against Syrian President Bashar al-Assad’s rule looks increasingly like a full-blown civil war. Speaking after meeting opponents of Assad in Turkey, U.N.-Arab League envoy Kofi Annan said he was expecting to hear later Tuesday a response from Syria to “concrete proposals” he had made to end the escalating violence.

At 12:01 p.m. (CDT), the APMEX precious metals spot prices were:

• Gold - $1,696.70 – Down $4.10.
• Silver - $33.65 – Up $0.21.

Gold has seen mixed trading overnight and was sitting lower than yesterday’s closing price this morning. The Federal Open Market Committee (FOMC) meeting later today isn’t expected to produce any substantial news. The likelihood of further monetary easing by the Federal Reserve has taken a hit with the best six-month period of job gains in nearly six years. Nic Brown of Natixis Commodity Markets Ltd. said, “The FOMC will be important, after the market interpreted (Fed Chairman Ben) Bernanke’s recent silence on it (easing) as an indication that it was unlikely to happen. The Gold market will be hanging on his every word tonight.”

Tensions in the Middle East have risen  after a U.S. soldier was accused in the murders of 16 civiliansin Afghanistan. The events have drawn the attention of the Taliban, who threatened to behead U.S. soldiers in retaliation. Though American and NATO officials have deemed the killings the work of a “rogue” soldier, many Afghanis are having trouble seeing it that way. U.S. President Barack Obama said that this occurrence should not be a reason for a rapid exit from the country by the U.S. military, and he stressed that the planned drawdown set for 2014 is still in place.

As mentioned in Monday morning’s Market Report, Spain is drawing attention of analysts now that the situation in Greece seems to be resolved. Sony Kapoor, managing director at Re-Define, said, “Spain has very large downside risks, and it needs to tread very carefully. Spain is in a very fragile situation.Its problems are significantly worse than Greece’s.” Spain has the eurozone’s highest unemployment rate (more than 22 percent), and many suspect that the country’s debt actually is worse than reported.

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

• Gold - $1,688.70 – Down $11.90.
• Silver - $33.33 – Down $0.11.

Precious metals prices have generally held steady since the  Mid-Day Gold & Silver Market Report, with Gold, Silver, and Platinum experiencing slight gains since noon. Only Palladium dipped further in afternoon trading. Prices for precious metals and stocks were down today in response to data released by the General Administration of Customs that showed China had a deficit of $31.48 billion last month in comparison to its $27.28 billion surplus in January. In a note to clients, a TD Securities analyst said, “The  deficit was four times the recent largest deficit  and adds to fears of slowdown, leading the bank (People’s Bank of China) to weaken the yuan and lifting expectations of further near-term monetary easing as inflation has fallen back significantly.” China’s history as one of the world’s largest purchasers of Gold is critical when gauging demand for the yellow metal.

A former official with the International Monetary Fund said an IMF meeting scheduled for later this week will include discussion of a third Greek bailout.  During an interview with CNBC today, John Lipsky, a former first deputy managing director of the IMF, said, “There is a program that has been discussed and is up for agreement and approval,” in response to a question about the possibility of another bailout for Greece. Lipsky also said that Europe would experience either a recession or flat economic growth in the future. That flat growth would be in line with the IMF’s current global forecast.

At 4:10 p.m. (CDT), the APMEX precious metals spot prices were:

• Gold - $1,702.00 – Down $10.50.
• Silver - $33.68 - Down $0.55.