CENTRAL BANK REACTIONS KEY TO SURVIVING
The euro rebounded in afternoon trading today, which helped Gold, Silver, and many stocks to rebound from early losses, as well. China is now firmly in the mix as one of the global problems, said Sandy Lincoln of BMO Asset Management U.S. “It’s Europe, China, and the U.S. as the three big worries,” Lincoln said. How central banks react in this trying time is key to whether the global economy essentially makes it through to the other side. Miller Tabak’s Peter Boockvar said, “We’ve been talking about the tug of war for a while of the slowing global economy on the one hand, and central bankers trying to fight it tooth and nail on the other hand.”
Recent data from China, as mentioned previously, may be the jolt that central banks needed to spur them into more action for the economy. Jeffrey Sica of SICA Wealth Management said, “Gold is up mainly because of the weak manufacturing numbers in China, suggesting that there is a pretty strong indication we are going to see more quantitative easing there.” One potential setback to more easing is rising food prices, however. Sica believes that the Federal Reserve will be more concerned with keeping inflation in tow due to these rising prices.
At 5 p.m. (EDT), the APMEX Precious Metals spot prices were:
- Gold, $1,621.00, Up $2.30.
- Silver, $28.19, Down $0.02.
- Platinum, $1,402.70, Down $11.10.
- Palladium, $584.30, Down $4.00.