Precious Metals gave up early gains after the better than expected nonfarm payrolls report was released this morning. The gain of 163,000 jobs in July blew past the expectations of 100,000. However, the unemployment rate moved up to 8.3 percent, the highest since February. American stock futures added to gains on the news.
The economies that make up the eurozone continue to drag. After barely avoiding a recession in the first quarter of the year, Ben May of Capital Economics said the future may not be so kind to that region. “If you look at the breakdown by country, it suggests that recession is going to be pretty broad based, and it’s not purely down to developments in the (eurozone) periphery,” May said.
Analysts at HSBC believe that the upcoming “fiscal cliff” for the United States and the rest of the economic uncertainty in the world will push the Gold price to $1,900 by the end of 2012. The analysts wrote, “Economic uncertainty, geopolitical tensions, and the uncertainty of the U.S. November elections are theoretically gold bullish. … Patience is the most important commodity.” Staleness in Gold’s price can be attributed to a give and take in the markets, according to the report. “Periods of heightened eurozone concerns have typically led to equity markets selloffs, triggering margin call related selling in Gold as investors seek to raise cash.”
At 9 a.m. (EDT), the APMEX Precious Metals spot prices were:
- Gold, $1,590.20, Up $1.90.
- Silver, $27.23, Up $0.14.
- Platinum, $1,392.20, Up $4.40.
- Palladium, $575.50, Up $6.70.
APMEX’s Account Managers now have extended hours Mondays through Thursdays and are here to serve you until 8 p.m. (EDT)! Or call us Fridays until 6 p.m. (EDT)! If you have any questions about investing in Precious Metals or simply would prefer to place your order by telephone, we are here to help.