Precious metals prices have been on the move this morning, with swings in pricing and now moving higher. The prevailing fear continues to encase the uncertainty revolving Spain’s debt issues. In a note to its investors, VTB Capital said, “Many still doubt that Madrid can implement the necessary budget cuts without the situation spiraling out of proportion in an economy that is already suffering from high unemployment and negative growth rates. … Jitters over the debt crisis in the monetary union are far from over, and this could be  potentially Gold-supportive  in the second quarter.”

Spain is not only having its own debt issues that it needs to overcome but an unexpected seizure of an asset by Argentina has left the country quite angry.  Argentina has announced plans to seize YPF, a subsidiary of Spanish energy giant Repsol. The move is lauded by Argentines but has caught a number of foreign governments by surprise. Spanish industry minister Jose Manuel Soria said, “With this attitude, this hostility from the Argentine authorities, there will be consequences that we'll see over the next few days. They will be in the diplomatic field, the industrial field, and on energy. … Argentina has shot itself in the foot.” Privatization of oil production is viewed as a key element with foreign powers, like China and Venezuela which have also privatized their oil production.

The International Monetary Fund raised its global outlook on the moderate boost provided by recent U.S. economic improvements. However there remain concerns regarding the sustainability of those improvements. In a summary of the report, the IMF wrote, “Improved activity in the United States during the second half of 2011 and better policies in the euro area in response to its deepening economic crisis have  reduced the threat of a sharp global slowdown. … Weak recovery will likely resume in the major advanced economies, and activity is expected to remain relatively solid in most emerging and developing economies. However, the recent improvements are very fragile.”

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

• Gold - $1,653.60 – Up $3.40.
• Silver - $31.80 – Up $0.37.

Gold and Silver are trading modestly higher this morning. Concerns over the eurozone debt crisis have surfaced again, prompting investors to take another look at  Gold as an insurance policy within a portfolio. Oil took an opportunity to gain, as well, as U.S. retail sales were better than expected, weakening the argument that high oil prices would slow the economy. U.S. stock futures are higher and continue to be motivated by corporate earnings at this time.

Furthering the idea that this is an age of market intervention by central banks, analysts believe that bullishness surrounding the European Central Bank’s “tricks” to boost liquidity has ended.  Now, investors seem to be waiting for more. Eimear Daly of Schneider Foreign Exchange said, “I think it’s basically the markets are now really bearish on Spanish and Italian debt.” Yields on 10-year Spanish bonds rose to 6 percent for the first time since last year. “Spain is basically hostage to bond investors. What all the yields are showing is that the markets think that if someone needs a bailout, it will be Spain,” Daly added.

When analysts refer to Gold as a safe-haven investment, they are 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.

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

• Gold – $1,654.10 – Up $3.90.
• Silver - $31.77 – Up $0.34.

A market sentiment survey conducted by CNBC shows  U.S. crude oil futures should be stable this week, unless Iran’s nuclear program becomes a worry in the headlines again. “If tensions with Iran cool somewhat, I would anticipate the focus shifting to the improving supply/demand balance, and we could see a strong move to the downside over the next several weeks,” said Kirk Howell, chief operating officer of SunGard’s energy and commodities business, SunGard Kiodex. Oil and Gold historically share a positive correlation.

It looks as if the  next domino in the eurozone debt crisis will be Spain. That country is the fourth largest in the eurozone, and the economy is currently struggling with a conservative government. The yields on Spanish 10-year bonds are now more than 6.1 percent when Italian bonds were at this same level last year, it alarmed the market. Rabobank strategist Lyn Graham-Taylor said, “We are back in full crisis mode.”

As mentioned in the  Mid-Day Gold & Silver Market Report, the World Bank has selected its next president. Dartmouth College President Jim Yong Kim is the  new president of the World Bank, in which he will be the first physician and Asian-American ever to lead this powerful organization.

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

• Gold – $1,653.30 – Down $7.40.
• Silver - $31.54 – Up $0.09.

Wall Street opened strong as banks are showing improvement. U.S. retail sales also helped the market’s upswing. Eighty-six S& P 500 companies are set to report their first-quarter results this week, which likely will set the tone for the near future.  As of Friday, 32 companies had given their reports, and 75 percent of them came in stronger than expected.  As the dollar has recovered from early struggles, the Gold price has moved down slightly since morning trading.

The World Bank will name its next president today. For the first time in its existence, there is competition for the top spot.  For more than 60 years, the post has been held by an American.  With global complaints about the U.S. monopoly on the position on the rise, developing countries have nominated Nigerian Finance Minister Ngozi Okonjo-Iweala to challenge for the presidency. Emerging economies are seen as very important to the global economic recovery, and many countries seem to be rallying behind Okonjo-Iweala to take a stronger position in international dealings.

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.

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

• Gold – $1,651.20 – Down $9.40.
• Silver - $31.45 – Even.

Economic data out of China seems to be the reason for the drop in precious metals’ prices today.    Like a line of dominoes, a sharper-than-expected slowing of growth in the country made way for a stronger dollar, which put pressure on the price of commodities across the board.  Even after today’s dip, gold has seen a positive week, gaining approximately 1.8%.

The news out of China was just one piece of the puzzle of the global economy this week, and the  U.S. stock market suffered its worst week  of the year.  Brad Sorensen of Charles Schwab Corp. said, “Let’s not get overly concerned, but yes, there are concerns out there that we need to look at.  China has been disappointing, U.S. consumer confidence adds to the pressure and Europe is not out of the woods yet.”

After the embarrassing failure in North Korea,  many fear the next step is a nuclear test.  A senior South Korean defense ministry official said, “The possibility of an additional long-range rocket launch or a nuclear test, as well as a military provocation to strengthen internal solidarity is very high.”  These tests are widely regarded as the North Koreans flexing their military muscles, as it were.  White House spokesman Jay Carney said, “North Korea’s provocative action threatens regional security, violates international law, and contravenes its own recent commitments.”

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

• Gold - $1,659.80 – Down $21.30.
• Silver - $31.56 – Down $1.03.

The  Consumer Price Index rose  less than 0.4 percent for February, but the index is on pace for a 3.6 percent increase for the entire year. Gasoline costs went up by 0.9 percent. These numbers should increase speculation that the Federal Reserve might have cause to step in again to boost the economy. Gold and Silver prices were heading sharply lower, but both had begun to bounce up on the news.

The weakness in Gold and Silver prices in early trading was the result of disappointing Gross Domestic Product data out of China. The slowdown in Chinese growth gave a  boost to the U.S. dollar, which in turn put pressure on Gold and Silver prices.

The good news is that the North Korean  long-range rocket launch failed  Friday. The bad news is that this might propel North Korea toward a nuclear test. North Korea very rarely makes embarrassing public admissions, but it has admitted that its much-anticipated rocket launch was a failure. This was a particularly hard blow to that country’s new young leader. “The possibility of an additional long-range rocket launch or a nuclear test, as well as a military provocation to strengthen internal solidarity, is very high,” a senior South Korean defense ministry official told a parliamentary hearing.

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

• Gold - $1.673.00 - Down $8.10.
• Silver - $32.29 – Down 30.

Precious metals prices enjoyed a bounce-back day primarily on technical buying. RBC’s George Gero said,  “People decided they wanted to get back into the market. People who thought we’d have a back-and-forth today were on the wrong side. You can search for news, but you’ll come up empty-handed.” The jobless claims data supposes there could be another round of quantitative easing, but based on previous reports over the past month, and release of Fed meeting minutes, that would really be the call of the investor.

China’s Gross Domestic Product data is scheduled for release Friday, and the report will be closely scrutinized. VTB Capital’s Andrey Kryuchenkov said, “It’s good that Gold has bounced back up. I don’t expect sustained losses, but neither do I expect sustained gains, because tomorrow you have Chinese GDP data, but you also have U.S. inflation (data due for release), and that is going to be closely watched.”

China’s central bank seems to be secretly increasing its Gold buying, certain sources have indicated. MarketWatch’s Peter Brimelow has been following news sites and is intrigued by some of the more interesting news coming out of China, including Hong Kong’s exports being about 13 times higher this year as opposed to last year at the same time. That  could indicate the People’s Bank of China is continuing to accumulate the yellow metal. China is the world’s largest producer of Gold and is a major importer of Gold, as well. The implication of this action supports a view of strong underlying demand, which could soften the effect of any drops in price. Gold remains above its 65-week moving average.

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

• Gold - $1,676.80 – Up $16.00.
• Silver - $32.41 – Up $0.83.

Gold prices are still trading below opening levels and may snap a four-session streak of price gains. Investment in Gold has dropped off since late-February highs as investors appear to be looking for more definitive reasons to keep buying. “The broader  macro environment still remains positive. In the near term, the floor will be set by a combination of how strong investment demand is, and how responsive the physical market is,” said Suki Cooper at Barclays Capital.

The U.S. government’s budget deficit widened by 5.3 percent in March, with the shortfall expanding to $198.2 billion. While a gap of $196 billion had been projected, the increase was due to increases in subsidies to TARP and recurring benefit payments. “The government budget deficit is still bursting at the seams, with little chance that either side of the aisle is willing to shake hands and get a deal done,” said Chris Rupkey of Bank of Tokyo-Mitsubishi UFJ Ltd. in New York, before the report was released. “The economy is growing again, but we can’t grow our way out of these trillion-dollar deficits,” he said. During last year’s debt-ceiling debate, precious metals prices set record highs.

Despite international protests, North Korea continues toward its  planned long-range rocket launch. The rocket, which began fueling Wednesday, could lift off as early as Thursday and complete a three-stage flight over the water near the Philippines. U.S. Secretary of State Hillary Clinton warned that history alludes to “additional provocations” from North Korea likely to follow after the launch, an apparent reference to the possibility of a nuclear test.

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

• Gold - $1,660.50 – Down $0.70.
• Silver - $31.63 – Down $0.11.