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Gold rises after Greek deal gives euro brief boost
* Gold takes cue from currencies
* Silver follos gold up despite drop in Chinese imports
* Coming up: U.S. Jan national activity index 1330 GMT
By Amanda Cooper
LONDON, Feb 21 (Reuters) - Gold rose for a second day on Tuesday, taking its cue from a rally in the euro after European finance ministers struck a deal with Greece on its emergency funding, while silver shrugged off data showing a steep drop in Chinese imports.
Euro zone finance ministers sealed a 130 billion euro ($172 billion) bailout for Greece to avert a chaotic default in March after persuading private bondholders to take greater losses and Athens to commit to deep cuts.
The euro held onto gains on Tuesday due to relief over the deal, but sceptical investors were looking to sell into any bounce on doubts whether the country's debt burden will become manageable.
Spot gold rose 0.3 percent on the day to $1,739.06 an ounce by 1248 GMT, while most active U.S. April futures rose nearly 0.9 percent to $1,740.60 an ounce.
" Gold is trading more like the other metals - as a risk asset, rather than a risk hedge," Citigroup analyst David Wilson said.
" You'd have thought that all the macro issues would be supportive for gold, when looking at U.S. and European debt and a slowing China, but it seems to be largely driven by the dollar/euro," he said, adding his bank saw the gold price moving closer towards $1,800 an ounce later this year.
Gold's correlation with the single European currency is holding close to 50 percent, compared with a correlation of around just 30 percent two weeks ago, indicating that it is more likely now to move in tandem with the euro than against it.
Gold priced in euros, meanwhile, rose 0.3 percent on the day to 1,312.59 euros an ounce and is set for a decline of 1.4 percent so far this month, following January's 10 percent rally.
In spite of gold's waning positive link with risk aversion, investors have snapped up almost as much of the metal through exchange-traded products so far this month as they did in the whole of January.
ETP HOLDINGS UP IN FEB
Holdings of gold in the world's major ETPs fell on the day by 12,300 ounces to 70.307 million ounces but are still set for a rise of more than 600,000 ounces so far in February, marking a second straight month of net inflows.
Silver took its cue from a higher gold price and edged up on the day, shrugging off a decline in January imports of silver by China, a major consumer of the metal.
Chinese imports of silver fell to 191.7 tonnes in January, their lowest in three years. In 2011, China imported a total of 3,575 tonnes of silver, the lowest in at least four years and down from 5,154 tonnes in 2010.
" This continues the trend, which we have observed for many months now, towards declining silver imports, removing a crutch which in the past has been important to the price. That said, the decreased imports were cushioned in January by growing demand for coins and ETFs," Commerzbank analysts said.
" What is more, speculative financial investors have also been showing greater optimism again recently, allowing the price of silver to gain nearly 20 percent in January. It is now hovering at roughly the same level as at the end of the month."
In more bullish news for silver, India's imports could top 5,000 tonnes in 2012 compared with 4,800 tonnes a year ago, Bombay Bullion Association President Prithviraj Kothari said on Tuesday.
If imports were to rise above 5,000 tonnes, this would mark a high since 2008's 5,048 tonnes.
Platinum rose by 1.3 percent on the day to $1,661.50 an ounce, close to its highest in three months
The platinum price has risen by 10 percent in the past month, since the closure of world number two producer Impala Platinum's operations at Rustenburg due to strike action.
The company said on Monday it had lost 80,000 ounces of platinum output at Rustenburg, which contributes 60 percent of Impala's total production.
The rally in platinum has narrowed its discount to gold, which is now below $80 an ounce, compared with historical lows of more than $200 an ounce in late December and early January.
Palladium rose 1.4 percent on the day to be bid at $701.75 an ounce, around its highest for a week, buoyed by the strength in the euro and other industrial metals.
(Editing by Jane Baird)
China to be the biggest gold market in 2012: WGC
NEW YORK (Commodity Online): After trumping down India to become the biggest gold importer in the last quarter of 2011, China is poised to overtake India to become the biggest gold market in 2012, as per the World Gold Council (WGC).
" It is likely that China will emerge as the largest gold market in the world for the first time in 2012”, The Guardian quotes Marcus Grubb, WGC's managing director for investment
In Q4 2011, China had become the largest gold importer for the quarter, importing 190.6 tonnes of gold compared to 173 tonnes of Indian imports.
On the fall in Indian demand in Q4, WGC states that “ the rapid rise and fall in the Rupee and the resulting domestic gold price swings had a strong impact on gold buying with both jewellery and investment demand in H2 lower by around 33%”
But despite a drop in Indian gold import, the WGC believes that India will be remain a key player in the gold market. “India's importance in the gold market will not diminish, even if demand softens. Not only is India a key player in the global gold market, but the domestic drivers of gold demand are largely independent of outside forces, firmly supporting gold's diversified investment base”, the report said
Gold climbs with euro on hopes for Greek deal
* Euro climbs on hopes for Greek bailout, China move
* European shares hit 7-month high, German bonds ease
* U.S. markets closed for national holiday
By Jan Harvey
LONDON, Feb 20 (Reuters) - Gold prices rose 0.6 percent on Monday as the euro rallied on optimism that European leaders will sign off on a rescue deal for Greece and as China's central bank further loosened monetary policy.
Spot gold was at $1,733.73 an ounce at 2 p.m. EST (1900 GMT), while U.S. gold futures for February delivery were up $9.60 an ounce at $1,735.50. COMEX trading volume of 42,000 lots was about one-quarter its daily norm due to the U.S. Presidents Day holiday.
Gold prices are up nearly 11 percent this year, benefiting from a rebound in the euro as well as expectations that U.S. monetary policy will remain loose, which cuts the opportunity cost of holding non-yielding bullion.
" It seems today that euro zone finance ministers will approve the 130 billion euro bailout package for Greece, and that should reduce fear in the financial markets and have a positive impact on the euro in particular," said Peter Fertig, consultant at Quantitative Commodity Research.
" The outlook (for gold) remains positive if we get a solution to the Greek crisis."
The euro rose 0.5 percent on Monday on expectations that euro zone policymakers were set to approve Greece's long-awaited second bailout, averting a messy default, and after China eased monetary policy to stimulate growth.
Euro zone finance ministers are expected to approve a second deal for Greece at their meeting which began at 1600 GMT, a move they hope will draw a line under months of turmoil that has shaken the currency bloc.
Other assets seen as higher risk rallied along with the euro, with European equities reaching their highest in nearly seven months and oil prices up more than $1 a barrel. Safe-haven German government bonds slipped.
While better appetite for risk is currently supporting gold, analysts say the appeal of other investments could keep prices rangebound this year.
" The risks (in Europe) could dissipate modestly in the near term. Certainly, in China, there is a growing acceptance that the government will step in to support growth, and things look like they're stronger than expected in the United States," said Deutsche Bank analyst Daniel Brebner.
" Globally, it looks like risk assets are being accumulated by investors, and in that kind of environment, gold should perform reasonably well," he added. " But I would argue it could underperform some of the other metals, the base metals and the white precious metals."
MONEY MANAGERS CUT GOLD LENGTH
Money managers in gold futures and options reduced their net long position by about 6 percent in the week of Feb. 14, their first decline in weeks, latest data from the U.S. Commodity Futures Trading Commission showed on Friday.
" The decline in net speculative length affirms our view that the aggressive moves at the end of January were largely as a result of overexcitement after the Fed's dovish announcement (that rates will stay low)," Standard Bank said in a note.
" Consequently, we remain cautious of gold's near-term prospects, and would not be surprised to see further weakness emerge this week."
Holdings of gold-backed exchange-traded funds tracked by Reuters rose by 115,730 ounces last week, a sixth consecutive week of gains, to 70.3 million ounces.
In China, which is challenging India for the title of world's top bullion consumer, the Shanghai Gold Exchange said it will cut trading fees for several of its precious metals contracts to reduce transaction costs, as it sought to keep its fees competitive after a rival bourse cut margins last week.
Silver rose 1 percent at $33.56 an ounce, while spot platinum gained 0.6 percent to $1,639.82 an ounce and palladium slipped 0.5 percent to $691.78 an ounce.
Platinum prices have climbed nearly 18 percent this year, benefiting from supply concerns in major producer South Africa.
The South African miners' union said on Saturday Impala Platinum, the world's second-largest platinum producer, has agreed to re-instate all 17,200 workers who were dismissed following an illegal strike.
The platinum/palladium ratio, or number of palladium ounces needed to buy an ounce of platinum, held near its 2012 high of 2.4 on Monday as platinum continued to outperform.
(Reporting by Jan Harvey and Jonathan Leff Editing by Anthony Barker and Derek Caney)
Closing Gold & Silver Market Report – 2/20/2012
By Craig C. CalvinFebruary 20, 2012GOLD PRICE UP ISRAEL MULLS ATTACK ON IRAN’S NUCLEAR PROGRAM
Gold prices ended the day up, buoyed by a Chinese cut in lender reserve requirements and optimism in the markets that Greece’s bailout would be approved by eurozone finance ministers. In an e-mail today, William Adams, the head of research for FastMarkets.com, wrote, “The metals and markets in general have been boosted following the cutting of reserve ratios in China.” In response to the news from Greece, the euro climbed versus the dollar. Precious metals prices historically move opposite to the dollar. Silver, Platinum, and Palladium prices ended the day up, as well.
As a second round of talks was under way today between Iranian officials and representatives from the International Atomic Energy Agency (IAEA) over Iran’s nuclear program, Israel made it clear that it isconsidering whether to attack the nuclear infrastructure in Tehran. At the same time, a day after Iran suspended exports of oil to Britain and France in response to new economic sanctions, the Middle Eastern country is again threatening to close the Strait of Hormuz. Closing the strait would prevent oil tankers from traveling to and from the Persian Gulf. Many are concerned that Iranian nuclear efforts, including the enrichment of uranium, is part of an effort to develop nuclear weapons. Iran has firmly denied the validity of such concerns, saying that its nuclear program is for the development of civilian power plants only. However, in November the IAEA stated that it was in possession of information that showed some of Iran’s research was weapons-related. Israel has repeatedly stated that it feels its existence would be threatened if Iran developed nuclear weapons capability.
According to a report by the Organization for Economic Co-operation and Development (OECD),developed economies saw their economic growth slow to a near standstill in the latter part of 2011. For the 34 economies included in the OECD, Gross Domestic Product (GDP) only grew 0.1 percent from the third quarter to the last quarter of 2011. And although GDP was 1.3 percent higher than it was in the last three months of 2010, that still represents a growth rate that is the slowest in two years. Only the United States’ 0.7 percent economic growth kept the overall GDP growth number from being in the negative. The economy of the eurozone shrank by 0.3 percent in 2011’s fourth quarter. Economists fear that shrinkage signifies that a recession is imminent.
At 4 p.m. (CST), the APMEX precious metals spot prices were:
- Gold - $1,734.50 – Up $9.60.
- Silver - $33.67 - Up $0.38.
Morning Gold & Silver Market Report – 2/20/2012
By Peter LaTonaFebruary 20, 2012WEEKEND EVENTS PUSH GOLD, SILVER HIGHER
The New York Stock Exchange is closed for President’s Day, but the precious metals market opened at its regularly scheduled time at 5 p.m. (CST) Sunday. Two events over the weekend pushed precious metals prices upward. First, the People’s Bank of China announced it was cutting major lender’s reserve requirements by 50 basis points. The call is to catalyze lending and increase liquidity. Commodities went up across the board, and precious metals prices went right along with them.
Second is the hope that a Greek bailout would be approved later today. The finance ministers from 17 nations are in Brussels, Belgium, discussing a $130 billion-euro ($172 billion U.S.) deal, which would be the second rescue in two years. There is still the question of how much private bond-holders will give up, along with concerns that even if a bailout happens, Greece eventually will default.
Oil futures surged 2 percent Sunday night on reports that Iran already has stopped shipping crude oil to British and French companies. Iran said it would ship this oil to new customers instead. Prices for Brent and WTI oil futures went up in low-volume trading.
At 8 a.m. (CST), the APMEX precious metals prices were:
- Gold - $1,734.70 – Up $9.30.
- Silver - $33.61 – Up $0.32.
Gold to average $1700 in Q1, $1875 in 2012: Barclays
By Commodity Online
Gold has been impacted by softer investor demand amidst positive physical demand and prices could average $1700 per ounce in the first quarter of 2012, according to Barclays Capital. The yellow metal will average $1875 in 2012, it said.
“Gold is in search of its next catalyst, but near-term hurdles persist in the form of dollar strength and profit-taking. It bodes well for prices that the physical market remains responsive and the broader external environment positive, given negative real interest rates, concerns over currency debasement and inflationary pressures longer term.”
Barclays Capital notes that macroeconomic factors are supportive of gold, additional QE would be supportive of gold prices as is the interest rate environment which is positive for the yellow metal. A quick resolution to Greek crisis is difficult. Moody’s has downgraded the sovereign credit rating of six European countries, including Italy.
Technical Strategy from Barclays Capital : Neutral. Gold is holding within a 1700/1750 range while momentum studies unwind from stretched levels. We are bullish and would prefer to buy dips against the 1640/1670 area. A move above 1752 would confirm that the next leg higher has begun toward our target near the 1800 range highs. Support: 1700/1670 Resistance: 1803/1763 Medium term: Neutral
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/charts/metals/gold/t24_au_en_usoz_2.gif)
Gold advances on Greece optimism, China easing
* Gold headed for biggest one-day rise in two weeks
* Spot gold could rise to $1,747/oz - technicals
* Coming up: Eurogroup meeting 1600 GMT
By Rujun Shen
SINGAPORE, Feb 20 (Reuters) - Gold prices climbed more
than half a percent on Monday as investors were buoyed by policy
easing in China and hopes for Greece to seal a bailout deal at a
meeting with euro zone officials later in the day.
An easing monetary stance boosts sentiment in gold by
raising the inflation outlook down the road and attracting
investors to bullion, a good hedge against inflation.
China cut its required reserve ratio over the weekend,
joining a number of central banks in relaxing monetary policies
to promote economic growth while the euro zone debt crisis
continues to overhang the global economy.
The optimism on a deal later in the day between Greece and
the euro zone on the second bailout for Greece sent equities and
the euro up, helping support gold.
" There is the expectation that everyone is going to relax
monetary policy, which will be good for stocks and commodities,"
said Ronald Leung, a physical dealer with Lee Cheong Precious
Metals in Hong Kong.
Spot gold rose 0.6 percent to $1,733.49 an ounce by
0713 GMT, on course for its biggest daily rise in two weeks.
U.S. gold also gained 0.6 percent to $1,735.40.
Technical analysis suggested that spot gold could rise to
$1,747 an ounce during the day, said Reuters market analyst Wang
Tao.
CAUGHT IN A RANGE
Gold has been caught in a range between $1,700 and $1,760
since the beginning of February, as investors held back big bets
as Greece ground towards a deal with its international lenders
on tough reforms and austerity measures in exchange for a
130-billion-euro bailout.
" Gold is searching for its next catalyst and has been caught
between healthy, albeit slower, investment demand and some
support from the physical market," said Barclays Capital in a
research note.
A small amount of buying and selling was spotted in Asia's
physical market, dealers said.
Money managers in gold futures and options reduced their net
long position in the week of Feb. 14, their first decline in
five weeks, as investors unwound some safe-haven bets due to
optimism surrounding the Greek debt crisis.
In silver, net long positions rose to a
five-month high to 25,747 contracts, in tandem with rising
length in industrial metals such as copper.
Holdings in the SPDR Gold Trust, the world's largest
gold-backed exchange-traded fund, rose to a two-month high of
1,281.285 tonnes by Feb 17.
Why silver will not rise above $35/oz
NEW YORK (Commodity Online): Silver prices have been depressed since the crash in May 2011 and many investors have begun to wonder when prices might start to head north.
And they might have to wait further, says a Standard Bank report which argues that Chinese silver inventories are sky high and as long as industrial demand fail to deplete those reserves, prices are not expected to rally above $35/oz
" As long as China does not import silver, the price is unlikely to rally on a sustainable basis”, the report states. China currently has enough silver inventories to meet 15 months of demand " and we believe that China’s inventory needs to decline to at least 10-12 months of fabrication demand in order for demand-pull pressure to build. Until then, we expect Silver Price rallies to fade above $35 per ounce”
Current silver demand from China is weak as indicated by declining premiums for the metal. Shanghai premiums are down from $5/oz last summer to below $0.50/oz in the current month.
The report suggested that China could come back and restock its silver supplies in Q3, 2012 which could provide enough support for prices to trade above $35/oz and test $40/oz.
Closing Gold & Silver Market Report – 2/17/2012
by Peter LaTona February 17, 2012IS CHINA’S CENTRAL BANK BUILDING GOLD RESERVES?
The first question might be, if the Chinese central bank is increasing Gold reserves, why is this significant? First and foremost, it could have a major effect on Gold prices. The Chinese central bank is the sixth-largest holder of Gold (relative to other central banks), but Gold represents less than 3 percent of its foreign reserve currency. The United States is the largest holder of Gold, but Gold represents nearly 70 percent of its reserve currency. Most Western nations own Gold representing 25 percent or more of their reserve currency. China has stated it intends to get its Gold reserves more in line with that of the West. It will take tons of Gold just to get China to a 10 percent Gold allocation. It will take a significant buying spree to bring it above 25 percent.
Another consideration: What will the Chinese central bank sell in order to purchase more Gold? The answer is fiat currency, and more than likely that will be the U.S. dollar. Not good news for the value of the U.S. dollar, which, by the way, could also drive up Gold prices. This is one reason China will try to be secretive about selling the dollar for Gold. China still will still have a large position in U.S. dollars, so it does not want to drive down the dollar’s value. But China is also buying Gold, so it does not want to push Gold prices up.
Marcus Grubb of the World Gold Council said it is likely that the large increase in Chinese Gold imports during 2011’s fourth quarter was indeed central bank purchases. The Chinese are not forthcoming with this type of information, but World Bank statisticians believe they have spotted a 36-ton discrepancy in reported imports via Hong Kong. They believe this indicates Chinese central bank buying.
In 2011, central banks around the world collectively increased their purchases of Gold by 471 percent over 2010. I will leave it to our readers to determine what conclusions might be drawn from this and whether it is time to look at personal Gold allocations.
Have a great weekend!
At 4 p.m. (CST), the APMEX precious metal prices were:
- Gold - $1,724.20 – Down $3.20.
- Silver - $33.34 – Down $0.10.
Friday was going according to what you said. Gold down, silver up, crude oil up.
Come often lah and give us some views can or not?
Laulan ( Date: 17-Feb-2012 10:39) Posted:
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China beats India as the biggest gold importer in Q4, 2011
MUMBAI (Commodity Online): China beat India to become the biggest gold importer during the last quarter of 2011. As of 3 months ending Dec 31, 2011, China had imported 190.6 tonnes of gold while Indian imports dropped 42% to 173 tonnes, a latest report by the World Gold Council (WGC) shows
High gold prices are believed to have kept Indian buyers at bay with both jewellery demand falling by 44% and investment demand falling by 38%
However, India remained the biggest gold importer in 2011 with 933.4 tonnes in import while China imported only 769.8 tonnes of gold. India demand weakened by 7% while Chinese demand gained 22% for the year.
But despite a drop in Indian gold import, the WGC believes that India will be the key player in the gold market. “India's importance in the gold market will not diminish, even if demand softens. Not only is India a key player in the global gold market, but the domestic drivers of gold demand are largely independent of outside forces, firmly supporting gold's diversified investment base”, the report said.
Morning Gold & Silver Market Report – 2/17/2012
By Ryan SchwimmerFebruary 17, 2012GOLD UP ON CHINESE DEMAND, GREEK SITUATION, INFLATION WORRIES
Precious metals prices are trading higher this morning thanks to increasing demand, a stronger euro, and inflationary concerns. As mentioned yesterday, data from the World Gold Council showed that China and India generated 49 percent of demand for Gold as an investment. Marcus Grubb, managing director for investment at the World Gold Council, said, “It is likely that China will emerge as the largest Gold market in the world for the first time in 2012. What is certain is that the long-term fundamentals for Gold remain strong, with a diverse and growing demand base, coupled with constrained supply-side activity.”
The euro was boosted by fresh hopes of a second bailout for Greece. Finance ministers from the eurozone are set to meet Monday, and leaders from Germany, Italy, and Greece are all optimistic that an agreement will be reached. However, tensions are rising in the region because the leaders have again pushed this problem to a crucial moment. Austrian Finance Minister Maria Fekter said, “The skepticism is especially strong among the triple-A states over whether Greece will be able to make it. The risk of a Greek insolvency is not off the table.”
The consumer price index was released in the U.S. this morning, and there is a concern that higher energy costs may hamper economic recovery. Though a large portion of consumers’ paychecks go to food and energy costs, the Federal Reserve does not include those two factors when they consider inflation. However, the core index (not including food and energy) still rose 0.2 percent, which was in line with analysts’ expectations.
At 8 a.m. (CST), the APMEX precious metals spot prices were:
- Gold - $1,733.40 – Up $6.00.
- Silver - $33.58 – Up $0.14.
Gold up on Greece bailout hopes heads for weekly gain
* Greece hopes to secure bailout on Monday
* Gold could test higher after failing to breach $1,700/oz
By Rujun Shen
SINGAPORE, Feb 17 (Reuters) - Gold prices rose on
Friday as optimism that Greece may soon secure an urgently
needed bailout buoyed financial markets and helped bullion
recover from a one-week low hit in the previous session.
Gold, on course for a weekly rise of 0.8 percent, has moved
in the range between $1,700 and $1,760 since the beginning of
the month, closely tracking the progress and setbacks in
Greece's struggle to obtain a 130-billion euro bailout.
Hopes that Greece has finally done enough to secure a second
bailout after Athens set out extra budget savings demanded by
its international lenders helped riskier assets rally in the
last trading day of the week.
Technical signals may have turned upbeat for gold, said Nick
Trevethan, senior commodity strategist at ANZ in Singapore.
" We're at the point where we have tried the downside three
or four times in the past two weeks and failed. The frustration
with failure to breach the $1,700-$1,710 level might put the
focus back on resistance," he said.
Lofty oil prices on concerns about supply disruption from
Iran are also expected to underpin sentiment in gold, he added.
Spot gold rose 0.2 percent to $1,732.39 an ounce by
0632 GMT. Gold touched a low of $1,705.09 in the previous
session, lowest since Feb. 10.
U.S. gold gained 0.3 percent to $1,734.30.
The data from the World Gold Council, showing that global
gold demand in 2011 hit a 14-year high on investment, China
buying and central bank purchases, also supported gold.
Gold, traditionally a safe-haven asset, has been tracking
riskier assets in the past few months as the turmoil caused by
the euro zone debt crisis forces investors to sell off their
gold positions to cover losses elsewhere.
Though there is increased optimism on Greece's bailout deal,
investors remained cautious as the euro zone is hardly out of
the woods and its debt crisis can continue to disrupt the global
financial markets.
" This week is the first week in a long run that we have such
tight range," said a Tokyo-based trader, referring to the narrow
range of around $32 for spot gold.
" People, especially in Asia have adopted the wait-and-see
attitude. Until Europe decides what to do with Greece things
will be quiet."
But he said the longer-term outlook for gold will stay rosy
as the U.S. Federal Reserve has pledged to keep interest rates
low until at least late 2014, boosting inflation outlook and
supporting bullion.
Spot silver edged up 0.2 percent to $33.51, off a
three-week low of $32.64 hit in the previous session. The metal
remained the top performer of the complex with a 21 percent
year-to-day climb.
I believe that if you are into metal, selling gold in exchange for silver is a better move than just buying gold.
Fundamentally, gold price might be stable for a couple of years (from watching the movements - no research done), but its potential to spike might be abit stale already, unless there are major chaos happening that might ruin the world economy.
Oil price will be the one to watch as it should be firm or higher, but in tandem with the better and improving economies , stock price will also rise for some time to come.
Gold flatlines Greece bailout hopes support
SINGAPORE, Feb 17 (Reuters) - Gold prices held steady on Friday, after optimism that Greece may soon secure an urgently needed bailout helped the metal recover from a one-week low hit in the previous session.
FUNDAMENTALS
* Spot gold edged down 51 cents to $1,727.89 an ounce by 0030 GMT, on course for a 0.5-percent weekly rise after two weeks of straight losses.
* U.S. gold was also little changed at $1,730.
* Hopes that Greece has finally done enough to secure a bailout on Monday helped buoy appetite in the euro and equities.
* Encouraging U.S. labour, manufacturing and housing data also helped boost sentiment in the financial markets.
* Industry group, the World Gold Council, believed that China's central bank made significant gold purchases in the final months of 2011, said the Financial Times, quoting a senior official at the group.
* Freeport McMoRan Copper & Gold Inc will renegotiate its contract with the Indonesian government to run Grasberg, the world's biggest gold mine and second-largest copper mine, the energy ministry said on Thursday.
* Spot silver was flat at $33.47, recovering from a three-week low of $32.64 hit in the previous session. MARKET NEWS
* The S& P 500 hit a nine-month high on Thursday, fueled by strong U.S. economic data and increased hopes for a deal on a Greek bailout next week.
* The euro clung to overnight gains in Asia on Friday, having risen on hopes that Greece was close to clinching a second bailout package, while improved risk appetite knocked the yen lower across the board.
DATA/EVENTS
1330 U.S. CPI Jan
2030 U.S. CFTC commitment of traders data Weekly
Closing Gold & Silver Market Report – 2/16/2012
By Craig C. CalvinFebruary 16, 2012MOODY’S WARNS OF RATINGS CUTS
PAYROLL TAX CUT DEAL REACHED
Gold prices ended the day higher again today, pushed upward mid-session by a drop in the dollar, as well as the jump in oil prices brought on by the continued tension between Iran, Israel, and the U.S. “With the euro making a bit of recovery in the midday, Gold is getting support from the possible inflationary effects from the very robust crude oil price trends,” said Richard Hastings, a Global Hunter Securities macro strategist. Hastings said, “Inflation will inevitably bubble up, and this should give Gold its next move significantly higher towards the late spring this year.” Platinum ended the day lower in price, while Silver and Palladium charted gains.
Moody’s Investors Service announced today that 131 financial institutions worldwide could soon receive a credit rating cut. Of the financial institutions facing a rating cut, 114 are spread across Europe. Moody’s explained that any future cuts would be a result of the sovereign debt crisis plaguing the eurozone and a reflection of deteriorating creditworthiness of European governments. The institutions that Moody’s indicated could see a cut in their credit rating include Bank of America, UBS, Morgan Stanley, Goldman Sachs, and Deutsche Bank. Last week, six European nations (including Italy and Spain) had their credit ratings cut by Moody’s. At the same time, the rating service warned France, Austria, and Britain about the possibility that their credit ratings could also see cuts in the near future.
Republicans and Democrats have hammered out a deal to extend the payroll tax cut due to expire at the end of February. Although leaders from both parties indicated they would support the deal, many see the agreement as a victory for Democrats, since Republicans did not demand that the tax cut extension be offset by a corresponding reduction in spending, as has been the case during past negotiations. Despite House Speaker John Boehner’s description of the deal as fair, a number of Republicans in Congress are unhappy that this agreement will add $100 billion to this country’s national debt.
At 4 p.m. (CST), the APMEX precious metals spot prices were:
- Gold - $1,729.00 – Up $1.90.
- Silver - $33.55 - Up $0.07.
Gold, Silver Heading Up
Roger Wiegand, editor of Trader Tracks, says cycles will bring gold & silver higher in the first half of 2012: gold up to $2,050/oz silver to $44/$50 ... Read More