Morning Gold & Silver Market Report – 8/1/2012


JOBS REPORT BETTER THAN EXPECTED; METALS TURN DOWN

Precious Metals, stock markets, and currency trades alike are relatively flat this morning.  The markets all seem to be waiting for a decision from the U.S. Federal Reserve at the conclusion of the two-day policy meeting today.  A big decision, such as a third round of quantitative easing (QE3), is not expected out of this meeting, however many analysts suggest that lower interest rates could be extended into 2015.

The European Central Bank (ECB) also has an announcement due this week, though comments from Bundesbank President Jens Weidmann has dampened expectations for that announcement.  Weidman said that the ECB’s independence “requires it to respect and not overstep it’s own mandate.  We are the largest and most important central bank in the Eurosystem and we have a greater say than many other central banks.”

Precious Metals turned slightly negative (with Silver and Platinum taking more significant downturns) after the release of the ADP jobs report this morning.  The economy saw more jobs added than expected for the month of July according to this estimate.  Good news for the economy perhaps makes it less likely for the Fed to announce drastic measures like QE3, which explains the turn in Precious Metals prices.

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

  • Gold, $1,607.00, Down $5.10.
  • Silver, $27.34, Down $0.68.
  • Platinum, $1,395.70, Down $21.20.
  • Palladium, $586.90, Down $4.70.