“The euro is irreversible” said Mario Draghi as he announced the bond buying program at the ECB press conference in Frankfurt. The program is called “MOT” or Monetary Outright Transactions. It will focus on the secondary sovereign bond market where Draghi said it was necessary to deal with “severe” distortions in the bond markets.
Ahead of the meeting, precious metals were up across the board but most notably gold is once again over the $1700 mark. The euro has gained against the dollar due to Mario Draghi’s remarks that he would do “whatever it takes” within the European Central Banks mandate to save the euro. It will take time to see if the MOT program is considered “whatever it takes” and keeps the euro’s rally going. Gold has a strong inverse correlation to the U.S. dollar and as we have seen the Euro rally we have also watched gold rally with it, in fact, gold is at a five month high.
Closer to home today’s jobless report showed jobless claims decreasing to the lowest levels in a month. Estimates are that claims decreased by 12,000. Although this isn’t a monumental leap it is a step in the right direction and right now any positive movement is welcomed.
At 9 a.m. (EDT), the APMEX Precious Metals spot prices were:
- Gold, $1,702.00, Up $9.40.
- Silver, $32.64, Up $0.32.
- Platinum, $1,581.00, Up $4.40.
- Palladium, $645.00, Down $2.00.