The Gold price experienced little movement today, settling just above $1,600 for most of the day. The yellow metal was heavily talked about once word broke that long-time gold bull John Paulson has confidence that the precious metal is a long-term currency and inflation hedge. This reassured investors that gold’s price has the opportunity to raise regardless of its performance the past two quarters.
The American economy is showing improvement with positive data in retail sales, the unemployment report and the trade deficit all reflecting stronger numbers. With this progress, Jan Hatzius at Goldman Sachs is predicting if the Federal Reserve pushes further stimulus measures like quantitative easing (QE3), it will not be in September. Hatzius wrote in a note to clients, “We believe that continued weakness is necessary to prompt a substantial easing move. And so far, that weakness is not showing up in the data.” Many economists are under the impression that the Federal Reserve Chairman Ben Bernanke will indicate the central banks next move at the Fed’s summer recoil in Jackson Hole, Wyo. on August 31.
At 5 p.m. (EDT), the APMEX Precious Metals spot prices were:
- Gold, $1,603.90, Up $2.90.
- Silver, $27.89, Up $0.02.
- Platinum, $1,397.00, Down $3.10.
- Palladium, $576.80, Down $3.10.