Precious metals rally on quantitative easing talks domestically, as well as internationally


 

Precious metals rally on quantitative easing talks domestically, as well as internationally. Gold in particular is continuing its upward movement as a result of the easing talks. Commodities manager Jeffrey Sherman said, “The gold market has been looking for any hints of any quantitative easing program. You are seeing this big bounce today off the fact that there could be something going on in euroland.” The ECB is potentially going to create new money to help sovereign bailouts within the eurozone, a potential boost to gold prices.

New home sales have fallen, creating a bit of a setback to the nominal housing market recovery. The drop was primarily due to a huge setback in the northeast. Economist Yelena Shulyatyeva said, “Housing will continue to recover gradually throughout the year, but fundamentals are not supportive of a fully fledged housing market recovery.” Meanwhile, fundamental data still suggests a marginal recovery as economist Joel Naroff said, “It is hard to believe that the market is turning downward when the home builders’ confidence index jumped in July to its highest level in over five years. Either developers are clueless or the data have yet to catch up with reality. I am on the side of the latter.”

Meanwhile concerns continue to grow over eurozone debt fears as a number of high ranking officials and even prime ministers are set to hit the European holiday season. After issuing a statement yesterday blasting bond traders for driving up Spain’s borrowing costs, Germany’s Finance Minister Wolfgang Schaeuble is now on a three week vacation. However, Germany’s Schaeuble and Prime Minister Angela Merkel are supported by gains in German bunds markets. The top two German officials’ vacation plans have investors looking elsewhere for crisis management.

At 5 p.m. (EDT) – the APMEX Precious Metals spot prices were:

  • Gold, $1,605.30, Up $27.10.
  • Silver, $27.39, Up $0.49.
  • Platinum, $1,400.40, Up $13.80.
  • Palladium, $566.00, Up $3.40.

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