Gold, Silver Prices Glimmer as Outlook Eases

by Andrew Burger | April 12, 2012 11:31 am

Gold Silver GLD IAU SLVGold and silver were moving higher Thursday morning following “accommodative” comments from Federal Reserve Vice Chairman Janet Yellen[1] and yesterday’s release of the Fed Beige Book.

Spot gold was up 0.81%, bid at $1,674.30 with an ask price of $1,675.30. It traded as high as $1,677 and as low as $1,650.80, according to Kitco market data[2]. The London afternoon reference price was set at $1,668.50, $10.50 per ounce higher than Wednesday’s afternoon reference price.

Spot silver was showing a sharp gain of 2.37%, bid at $32.36, with an ask price of $32.46. The morning high as of time of writing was $32.55 and the low was $31.42. Thursday’s reference price was set at $31.47 in the London a.m., 23 cents an ounce lower than Wednesday’s price fix.

Initial claims for unemployment insurance jumped 13,000 to a seasonally adjusted 380,000 in the week ended April 7, the highest level in two-and-a-half months[3], the Labor Department reported. School workers applying for jobless benefits during spring break fueled the rise.

U.S. wholesale prices were unchanged month-to-month in March, vs. expectations for a decline, as the rise in oil prices subsided. The wholesale cost of gasoline dropped 2% in March, while wholesale prices for diesel and residential electricity also declined.

Chinese stocks rallied in advance of tomorrow’s GDP report[4], as market participants are anticipating a weak report will prod government policymakers to take additional monetary easing steps.

Gold bullion prices fell along with the dollar-euro exchange rate, dropping below $1,660 an ounce in London morning trading Thursday, BullionVault reported in its London Gold Market Report[5].

“Gold is struggling, weighed down by … faltering investor interest,” according to a Thursday research note from South Africa’s Standard Bank. “Physical demand on the other hand has been supportive, with particularly strong buying coming out of the Far East on price dips.”

In exchange trading, gold and silver trusts were moving higher.

Gold and silver mining ETFs also were surging upwards in price.

Gold mining shares were showing sharp gains, with Eldorado Gold (NYSE:EGO[12]) leading in terms of morning gains.

Silver mining shares were mixed.

As of this writing, Andrew Burger did not hold a position in any of the aforementioned securities. Adrian Ash of BullionVault contributed to this report.

Endnotes:

  1. Janet Yellen: http://www.bloomberg.com/news/2012-04-11/yellen-says-jobs-outlook-warrants-accommodative-policy.html
  2. Kitco market data: http://www.kitco.com/market/
  3. highest level in two-and-a-half months: http://www.marketwatch.com/story/us-jobless-claims-jump-to-380000-2012-04-12?link=MW_story_latest_news
  4. tomorrow’s GDP report: http://www.bloomberg.com/news/2012-04-12/china-s-stock-futures-rise-on-prospect-of-monetary-policy-easing.html
  5. London Gold Market Report: http://goldnews.bullionvault.com/buying-gold-041220125
  6. GLD: http://studio-5.financialcontent.com/investplace/quote?Symbol=GLD
  7. IAU: http://studio-5.financialcontent.com/investplace/quote?Symbol=IAU
  8. SLV: http://studio-5.financialcontent.com/investplace/quote?Symbol=SLV
  9. GDX: http://studio-5.financialcontent.com/investplace/quote?Symbol=GDX
  10. GDXJ: http://studio-5.financialcontent.com/investplace/quote?Symbol=GDXJ
  11. SIL: http://studio-5.financialcontent.com/investplace/quote?Symbol=SIL
  12. EGO: http://studio-5.financialcontent.com/investplace/quote?Symbol=EGO
  13. AEM: http://studio-5.financialcontent.com/investplace/quote?Symbol=AEM
  14. ABX: http://studio-5.financialcontent.com/investplace/quote?Symbol=ABX
  15. GG: http://studio-5.financialcontent.com/investplace/quote?Symbol=GG
  16. KGC: http://studio-5.financialcontent.com/investplace/quote?Symbol=KGC
  17. NEM: http://studio-5.financialcontent.com/investplace/quote?Symbol=NEM
  18. NG: http://studio-5.financialcontent.com/investplace/quote?Symbol=NG
  19. AUY: http://studio-5.financialcontent.com/investplace/quote?Symbol=AUY
  20. CDE: http://studio-5.financialcontent.com/investplace/quote?Symbol=CDE
  21. HL: http://studio-5.financialcontent.com/investplace/quote?Symbol=HL
  22. PAAS: http://studio-5.financialcontent.com/investplace/quote?Symbol=PAAS
  23. SLW: http://studio-5.financialcontent.com/investplace/quote?Symbol=SLW
  24. SSRI: http://studio-5.financialcontent.com/investplace/quote?Symbol=SSRI

Source URL: https://investorplace.com/2012/04/gold-silver-prices-beige-book-jobs-report-gld-ego/