Weekly Gold & Silver Market Recap for April 20, 2012

Golden Haven:

Precious Metals prices are relatively flat today, as the equity markets in the U.S.A. climbed 100 points during morning trading hours. Better than expected business sentiment out of Germany boosted the euro and pushed Gold prices slightly higher. In general, Gold prices are caught between the unlikelihood of QE3 versus its safe haven appeal in the face of a ramped up European debt crisis. The International Monetary Fund and the World Bank are meeting this weekend to discuss the euro crisis. News from that meeting should affect Gold prices at market open, 6 p.m. (EDT) Sunday.  While Gold serves as a safe-haven investment for sectors ranging from individual investors to central banks, it may also be helping in an area that is a key to economic recovery: jobs. The Colorado School of Mines has a 94 percent employability rate for its 2011 graduates. Starting salaries are in the mid-$60,000 range, which is significantly higher than the average starting pay for other college graduates. In the 1990s, Gold averaged $350 per ounce; now, the price is more than $1,600, and with that comes an overflow of opportunity for the next generation’s precious metals work force.  Analyst’s reference to Gold as a safe-haven investment is not always referring simply to economic turmoil. Geopolitical tensions can also cause a boost in Gold’s appeal, such as the current situation with North Korea. After that country’s rocket failure last week, the U.S. is looking at “all options” to stop North Korea from conducting a third nuclear test. The U.S. already has halted food aid for the country after an agreement was broken by the aforementioned rocket launch. Continue reading

Wednesday links: Gold Plummets

In most cases, when Federal Reserve Chairman Ben Bernanke speaks, precious metals prices go up. But not today. Bernanke’s comments have created a sharp selloff in Gold and Silver. In testimony before a congressional committee, Bernanke said he would not take the possibility of QE3 off the table, but his comments have been interpreted to mean that another round of quantitative easing is unlikely. “Bernanke said that another round of bond buying is not off the table,” said Shelley Goldberg of Roubini Global Economics. “But, the overall perception in the market is that there will be less of a need for QE3, and that has rallied the dollar and is bearish for commodities.”

Precious Metals

Big moves in bonds, gold, silver; Stocks end flat (CNN)

Gold Falls in ‘Manic’ Plunge as Bernanke Damps Stimulus Bets (Bloomberg)

Ben Bernanke Comments Trigger Sell-Off in Silver and Gold (CNBC)

Gold plummets as Bernanke dashes stimulus hopes (MSN)


Bernanke Sees Temporary Inflation Pressure (WSJ)

Fed Sees Modest Growth (WSJ)

U.S. grew a revised 3% in fourth quarter (WSJ)


Stocks turn down despite upbeat GDP report (USA Today)

Recovery Worries Weigh on Stocks (WSJ)

Tuesday links: Silver’s climb

Precious Metals

Silver prices climb, oil falls, grains continue to rise (Washington Post)

Gold May Decline for Third Day as Greek Downgrade Hurts Euro (Bloomberg Businessweek)

Return to gold standard would be damaging: report (Reuters)

Chasing Gold Coins to Spain (Forbes)

Silver Soars 4.5%; Gold Hits Three-Month High (WSJ)


U.S. Bank Lending Increased in Late 2011 (WSJ)

Home prices fell in December in most US cities (AP)

U.S. Consumer Sentiment Climbs Toward ’08 Levels (Bloomberg)

Euro Rises Against Dollar, Yen Before ECB Bank-Loan Operation (Bloomberg Businessweek)


FINALLY, DOW CLOSES ABOVE 13000: Here’s What You Need To Know (BusinessInsider)

Thursday links: Gold prices continue to rise

Precious Metals

Gold Rises to Three-Month High as Dollar Drops; Silver Gains (Bloomberg Businessweek)

Gold prices climb on concern about European economy; other commodities mostly higher (Washington Post)

Gold Prices Settle Higher as the Dollar Dips (The Street)


US STOCKS-Wall St rises, nearing 4-year highs (Reuters)


UPDATE 3-Euro zone economy set to shrink in 2012, deficits in focus (Reuters)

Jobless Claims in U.S. Hold at Four-Year Low: Economy (Bloomberg BusinessWeek)

Wednesday links: Gold prices jump

Precious Metals

Gold jumps to 3-month high on chart buying (Reuters)

PRECIOUS METALS: Platinum Ends At 5-Month High, Gold Rallies (WSJ)

Stocks Decline After Economic Reports; Gold Jumps, Yen Weakens (Bloomberg Businessweek)

Gold settles at three-month high, above $1,770/oz (Marketwatch)


Euro zone teetering on brink of recession (Reuters)

US home resales at 1-1/2 yr-high, supply falls (Reuters)


Stocks capped by growth worry, oil at 9-month high (Reuters)

Monday Links: Gold Prices Up

Precious Metals

Colo. bill would legalize gold, silver currency (CBS News)

Central Bankers Rub Gold Bugs the Right Way (WSJ)

Felix Zulauf: Why You Need to Own Physical Gold (Financial Sense)

Why This Gold Bull Market Is Nothing Like Past Bull Markets (Business Insider)


BRICs no less vulnerable to global risks (Reuters)


Is It Time to Start Worrying About Inflation Again? (Time)

Schedule for Week of February 19th (Calculated Risk)

Friday links: Billionaire Paulson Says Buy

Quote of the Week: “By the time inflation becomes evident, gold will probably have moved, which implies that now is the time to build a position in gold,” John Paulson

Precious Metals

Behind Central Banks’ Gold Buying (The Street)

Gold Bulls Expand as Paulson Says Buy (Bloomberg)

Archaeologists strike gold in quest to find Queen of Sheba’s wealth (Guardian.Co.UK)


Record $6 Trillion of Fake U.S. Bonds Seized (Bloomberg)

Could Twitter predict the stock market? (Reuters)

Cashin: Here’s The Real Risk If Greece Defaults (WSJ)


Inflation heats up on gasoline prices (Reuters)

January CPI Comes In Tame At 0.2% Headline, 0.2% Core (BusinessInsider)