Daily Precious Metal Update

April 28, 2009 - Precious metal bullion bars are losing value today as a sharp decline in spot prices is occurring due to a flock into safe haven currencies like the United States Dollar. The overall fluctuation with the majority of financial markets has been considered rather odd by market analysts because several investment classes are not sticking to their common trajectories. For example, United States stocks are falling today after the latest news from the US Government saying that major banks may need more capital in order to sustain throughout this economic recession. On the other hand, popular bullion bars and coins are losing value side-by-side with crude oil prices while the United States Dollar increases in value. All of this market movement is occurring because of mixed investor sentiment about the future of this financial crisis. Short-term projections are saying that further fluctuation may be experienced after the upcoming banks stress tests that could show a severe vulnerability in our economy.

By around 1:20 PM Eastern Standard Time, bullion bars are showing signs of contractions across the board based on lower safe haven demand, and the gold spot price is currently trading at $892.20 per ounce, down $14 for the day while the silver spot price is currently trading at $12.48 per ounce, down $.42 for the day and the platinum spot price is trading at $1087 per ounce, down $53 for the day. Market analysts are expecting spot prices to rebound by next week in the event that the bank stress tests come back much worse than expected.

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Danny Burns

Senior Staff Writer – Precious-Metal.org