Precious Metals prices are on the upswing this morning, following the euro


 

Precious Metals prices are on the upswing this morning, following the euro.  The common currency is rebounding on news that the European Union bailout fund will be able to support troubled Spain by buying Spanish bonds.  Mitsui Precious Metals analyst David Jollie said, “It seems that every time we do not have [a third round of quantitative easing] announced, gold slips back as some of these more speculative positions are liquidated.  After that disappointed selling, I think the market returns to more normal behavior and some of these speculators will try to rebuild positions.  Others such as the official sector are also likely buyers on price declines.”

Federal Reserve Chairman Ben Bernanke’s second day of testimony was as uneventful as expected in the way of QE3 announcements.  Strategists at Lloyds Bank said, “Barring some severe intervening event or drastic downside data prints over the coming 10 sessions, it would appear that the chances of additional monetary stimulus … being announced in the immediate future are receding.  Indeed, the timeline for Fed action is becoming increasingly tight, hemmed in as it potentially is by the looming presidential election in November.”

American stock futures are on the rise this morning, despite an increase in jobless claims.  Economists expected an increase in claims to 365,000, but the actual number came in much higher at 386,000.  These numbers have had less of an effect recently, as Daniel Silver of JPMorgan Chase & Co. explains.  He said, “We have to ignore claims for a few weeks because it’s just too hard to get a true signal from the numbers.  Even just a small mistake in the seasonal factors can generate big changes.”

At 9 a.m. (EDT), the APMEX Precious Metals spot prices were:

  • Gold – $1,585.40 – Up $13.00.
  • Silver – $27.49 – Up $0.31.
  • Platinum – $1,417.90 – Up $13.70.
  • Palladium – $582.50 – Up $4.00.

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