Precious metals rally on quantitative easing talks domestically, as well as internationally

 

Precious metals rally on quantitative easing talks domestically, as well as internationally. Gold in particular is continuing its upward movement as a result of the easing talks. Commodities manager Jeffrey Sherman said, “The gold market has been looking for any hints of any quantitative easing program. You are seeing this big bounce today off the fact that there could be something going on in euroland.” The ECB is potentially going to create new money to help sovereign bailouts within the eurozone, a potential boost to gold prices.

New home sales have fallen, creating a bit of a setback to the nominal housing market recovery. The drop was primarily due to a huge setback in the northeast. Economist Yelena Shulyatyeva said, “Housing will continue to recover gradually throughout the year, but fundamentals are not supportive of a fully fledged housing market recovery.” Meanwhile, fundamental data still suggests a marginal recovery as economist Joel Naroff said, “It is hard to believe that the market is turning downward when the home builders’ confidence index jumped in July to its highest level in over five years. Either developers are clueless or the data have yet to catch up with reality. I am on the side of the latter.”

Meanwhile concerns continue to grow over eurozone debt fears as a number of high ranking officials and even prime ministers are set to hit the European holiday season. After issuing a statement yesterday blasting bond traders for driving up Spain’s borrowing costs, Germany’s Finance Minister Wolfgang Schaeuble is now on a three week vacation. However, Germany’s Schaeuble and Prime Minister Angela Merkel are supported by gains in German bunds markets. The top two German officials’ vacation plans have investors looking elsewhere for crisis management.

At 5 p.m. (EDT) – the APMEX Precious Metals spot prices were:

  • Gold, $1,605.30, Up $27.10.
  • Silver, $27.39, Up $0.49.
  • Platinum, $1,400.40, Up $13.80.
  • Palladium, $566.00, Up $3.40.

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.

 

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Gold jumps over 3 percent on EU deal

Gold jumps over 3 percent on EU deal, logs monthly gain (CNBC)

Consumer Spending in U.S. Stalls as Hiring Weakens: Economy (Bloomberg)

S&P Posts Best Day This Year (WSJ)

What Really Happened at the European Summit? (BusinessWeek)

Gold Prices Jump Most in Four Weeks on Europe Relief Plan (BusinessWeek)

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European summit not looking good; dollar rising

Precious metals prices are weathering the blows of investors concerns over the eurozone debt crisis. The concerns ahead of the European Union summit, has influenced investors and even world markets. The rupee continues to struggle, which has curbed the primary gold-investing nation of India’s normal buying. Analyst Robin Bahr said, “There’s no semblance of a safe-haven at the moment but as the price goes lower that bid does come back as you maybe get some renewed investor interest – sovereign wealth funds and central banks looking to nibble away and even some physical buying.”

The concerns now are growing, as concerns over Germany’s own economic issues mount. As executive and consumer sentiment fell from 90.5 in May to 89.9, the lowest for Germany since late 2009 and unemployment is on the rise. The issue is that now core member nations, not just secondary nations, are affected by the growing debt crisis. Economist Christoph Weil said, “Germany won’t be able to disconnect from the euro-region developments… The second quarter will show an economic contraction and there are no signs of improvement for the following three months. Whether the situation stabilizes afterward hinges decisively on the euro crisis and latest developments are no real reason for optimism.”

The pressure continues to build for German Chancellor Angela Merkel within the European Union as she continues to be attacked on all sides from nations that find her intransigence off-putting. However, it is not just her partner nations, but she is even pressured globally. The issue is that as unpopular as her beliefs are in the EU, they are quite popular with the German people. Billionaire George Soros feels her position is a bit myopic. He said, “Merkel has realized that the euro is not working, but she cannot change the narrative she has created because that narrative has caught the imagination of the German public, and the German public has accepted it.”

At 9:00 a.m. (EDT) – the APMEX Precious Metals spot prices were:

  • Gold – $1,570.10 – Down $9.90.
  • Silver – $26.96 – Down $0.11.
  • Platinum – $1,402.30 – Down $9.50.
  • Palladium – $577.00 – Down $3.80.
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Gold edges up ahead of EU summit, trading quiet

Gold edges up ahead of EU summit, trading quiet (Reuters)

Global stocks up on U.S. data, oil; euro slips pre-summit (Reuters)

US durable goods orders up but trend, outlook weak (Reuters)

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Gold waits on summit, euro in survival mode

The Gold market continues its holding pattern on the eve of the European summit. The yellow metal started the day on an upswing and has now settled down as investors await news from Europe. Matt Zeman, head trader with Kingsview Finance in Chicago summed it up by stating, “There‘s no clear-cut direction (for Gold), everybody is waiting for the EU summit. You probably are seeing some positioning ahead of that.”

All eyes are focused on the European summit tomorrow, which will address the main topics of economic reform and recovery. The problem may not lie in the numbers; it may be in the leadership’s ability to work together. “The euro crisis is in some ways mind-bogglingly simple to solve … because it isn’t economics, its politics,” Jim O’Neill, chairman of Goldman Sachs Asset Management commented. “If Angela Merkel and her colleagues stood there together with the rest of the euro area … and if they behaved as a true union this crisis would be finished this weekend,” he added.

In the United States there is still major concern surrounding the future of the economy however, there are signs that point toward the positive. The durable goods report for May came out, and the numbers have improved for the first time in three months. The increase in durable goods is seen as an indicator that businesses have faith in the U.S.A. economy even with a lowered employment forecast and the struggles in Europe.

At 1:00 p.m. (EDT), the APMEX Precious Metals spot prices were:

  • Gold, $1576.80, Up $0.40
  • Silver, $26.98, Down $0.18
  • Platinum, $1412.80, Down $16.00
  • Palladium, $581.00, Down $13.70
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