Precious metals have deflated since Bernanke’s testimony earlier this week, but remain poised for the first overall weekly increase in about a month. Physical demand of gold is still hurt by India’s currency issues and a weakening ETF market as well. Analyst David Wilson’s remarked, “Given the collapse of the rupee, gold prices in India are still close to record highs, which is killing the jewelry market at the moment… Physical investor demand, when you look at ETFs, is not positive, so you would need speculative demand to be making up the difference, and it’s not. That’s related to the issue of growing skepticism over whether there will be U.S. QE.”
Meanwhile a Spanish bank bailout has been agreed to pending the actual bank audit to see just how bad the property loan situation actually is. Luxembourg’s finance minister Luc Frieden said, “We have formalized what we discussed in the past two Eurogroup meetings. We have formally approved the memorandum that lays out the conditions under which Spain can be lent money for the recapitalization of its banks… The approval of all 17 ministers is there, and that means that the program can continue. Money will not flow immediately, because work on the analysis of the specific banks is ongoing.” The audit is expected to be completed by mid-September.
Meanwhile concerns continue to mount over the correct response to the escalating violence in Syria following Russia and China’s veto of the U.N.’s proposal. The rumors swirling President Assad has agreed to give up power are being shot down. The clamor for military assistance is not there the same way it was in Libya either. The overall feeling is that “the regime is going through its last days,” according to rebel leaders.
At 9:00 a.m. (EDT) – the APMEX Precious Metals spot prices were:
- Gold – $1,578.80 – Down $3.20.
- Silver – $26.98 – Down $0.33.
- Platinum – $1,411.40 – Down $11.70.
- Palladium – $578.40 – Down $7.50.
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