Metals flat after jobless report

English: A frame from a screencast from the US...

English: A frame from a screencast from the US House Financial Committee full committee hearing “An Examination of the Extraordinary Efforts by the Federal Reserve Bank to Provide Liquidity in the Current Financial Crisis which took place Tuesday, February 10, 2009, 1:00pm, 2128 Rayburn House Office Building. The frame shows Chairmen Ben Bernanke responding to a question posited by John E. Sweeney Full Committee (Photo credit: Wikipedia)

Precious Metals are mostly flat this morning as the release of the weekly jobless claims report has had little effect on Gold and Silver. The four week moving average of new claims rose by 1,500, while the week to week change was flat. The main focus of the markets continues to be the Jackson Hole Economic Symposium, and, more specifically, Federal Reserve Chairman Ben Bernanke’s speech Friday. Daryl Guppy, chief executive at Guppy Traders, said, “We are sitting back on this (long term uptrend) point (in the stock market) so we either see a strong reaction away or a strong break away from this level (in response to Bernanke). And that’s the key factor we’re seeing across the board, because we are sitting on critical levels.”

Europe is clearly taking a backseat to the Fed’s potential monetary easing announcement, but the European Central Bank (ECB) is readying for an ECB Governing Council meeting next week. James Reid of Deutsche Bank said, “For now, Europe is in a holding pattern ahead of clarity surrounding the next move in the great ECB bond buying maneuverings, and the U.S. is in limbo ahead of Bernanke’s Jackson Hole appearance tomorrow. For the latter, speculation mounts that Bernanke won’t say anything overly new in his speech.”

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

  • Gold, $1,664.70, Up $3.30.
  • Silver, $30.91, Down $0.02.
  • Platinum, $1,526.00, Up $4.70.
  • Palladium, $633.90, Down $2.50.

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, Silver flat as Jackson Hole speech looms

Jackson Hole, WY

Jackson Hole, WY (Photo credit: mf.lane)

Gold and Silver prices are mostly flat this morning ahead of the Jackson Hole Economic Symposium to be held later this week.  Though European Central Bank President Mario Draghi has bowed out of the event, all eyes are still on the Federal Reserve and whether chairman Ben Bernanke will announce another round of quantitative easing.  Scott Anderson of Bank of the West said that the Fed has been “like a diver eyeing the pool from the edge of the diving board, but can’t seem to get themselves to move.”

The “will they or won’t they” game that the Fed has been playing in regards to quantitative easing has pushed and pulled the Gold price to highs not seen since Spring.  Many investors are expecting Bernanke to announce such a plan during his speech at Jackson Hole on Friday.  However, there is another Federal Open Market Committee meeting September 12-13 that may serve as the podium for the official announcement.  Danske Bank analyst Christen Tuxen said, “We think that we will see a fairly dovish Bernanke on Friday and that he will commit, if not at Jackson Hole then at the September FOMC meeting, to deliver more easing to the market.”

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

  • Gold, $1,667.10, Down $1.10.
  • Silver, $30.93, Down $0.04.
  • Platinum, $1,520.00, Down $1.40.
  • Palladium, $635.20, Down $6.00.

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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Anticipation for Friday grows, affects the markets

 

The dominant news of the week will be speculation as to what will or won’t be announced during the annual Jackson Hole symposium.  Anticipation leading up to those announcements left stocks flat.  David Morrison, senior market strategist at GFT Markets in London, said “There are hopes that the Fed chairman will signal that another round of quantitative easing (QE) is imminent, although it seems more likely that he will keep investors guessing, while assuring them that the Federal Reserve stands ready to intervene further, if required.”

 

The eurozone is in a battle of its own, regardless of what Bernanke says at Jackson Hole.  Spain is being sucked into the center of the eurozone debt crisis.  Spanish consumers have pulled as much as 5 percent of their private sector deposits.  The other side of this coin is that Greek banks are seeing a boost in their deposits since their June elections.  Private sector deposits are up about 2 percent.

 

Official portrait of Federal Reserve Chairman ...

Official portrait of Federal Reserve Chairman Ben Bernanke. (Photo credit: Wikipedia)

 

Gold is riding a three month increase in price, up 3.1 percent.  This is the highest percentage increase since January.  The rising prices are fueled, in part, by expectations for what will come from the Jackson Hole meeting.  Gold’s meteoric rise in price, doubling since 2008, has been fueled by the Fed’s QE tactics.  For those that are risk adverse, gold holds a strong appeal; as currencies inflate, gold will always be a store of wealth as its value is historically independent of any one currency.

 

At 9 a.m. (EDT), the APMEX Precious Metals prices were:

 

  • Gold, $1,665.40, Down $8.70.
  • Silver, $30.90, Down $0.24.
  • Platinum, $1,524.50, Down $29.70.
  • Palladium, $640.40, Down $15.80.

 

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Could Gold Be Set for Its Best Year Since 2012?

In a report on Bloomberg this morning, the prospect that gold might rise to $1800 an ounce by year’s end could extend gold’s gains for the year to over 15%. This would be the greatest gain since the 30% increase in 2010. The speculation for rising prices continues to be the expectation the many world governments from the U.S. to China will enact measures to stimulate their economies, which will increase gold prices as an inflation hedge.

Although there are many who do not expect any major announcement by Fed Chairman Ben Bernanke at this week’s meeting in Jackson Hole, Wyoming, one top Fed official is speaking out for more stimulus. Chicago Federal Reserve Bank President Charles Evans told reporters that the Federal Reserve needs to launch QE3 immediately and keep buying bonds until the jobless rate goes down. “I don’t think we should be in a mode where we are waiting to see what the next few data releases bring” Evans said to the Hong Kong Bankers Club. “We are well past the threshold for additional action; we should take that action now.”

German Chancellor Angela Merkel has asked officials in her coalition to “weigh their words” when they call for a Greece exodus from the euro. According to Chancellor Merkel, these words are very damaging at a time negotiations are at a critical phase. It is clearly her intent to keep the euro intact as is. She also expressed that Greece Prime Minister Antonis Samaras is taking very serious steps to reduce debt. September is seen as a critical month for European leaders as they continue to try and get a grip on this now three-year old crisis.

At 9AM EDT the APMEX precious metals prices were:

  • Gold price – $1,670.40 – down $1.00
  • Silver price – $31.01- up 30 cents
  • Platinum price – $1,546.80 – down $8.60
  • Palladium price – $651.30 – down $2.40

Questions about currency, Greece asks for more time

The chairman of Rogers Holding, Jim Rogers had some very direct statements regarding his investment outlook in a recent interview. On the topic of global currencies and their future, the chairman was quoted as saying, “paper money is becoming more suspect”. When asked about gold he said that it “has been used for thousands of years and he’s not one to question history.”  He also added that the “cracks” have started show in global currencies and “maybe within ten years we won’t use paper money.”

Talks have begun between European Union leaders today regarding the economic crisis that is ongoing in the region. One of the main topics is going to be the country of Greece and their ability to pay back the loans they have taken from the EU. Greek Prime Minister Antonis Samaras is making his case to get an extension on deadlines to pay back the funds.  “All we want is a bit of ‘air to breathe’ to get the economy running and to increase state income. More time does not automatically mean more money,” Samaras said. The main issue revolves around the Greek government agreeing on an exact plan to raise the funds needed. If the debt continues to go unpaid there could be more talk of Greece exiting the union.

In the United States, there is a small town in Wyoming that has the attention of the economic world. In Jackson Hole, Wyo., the Federal Reserve is holding its annual meeting of many of the top central bankers from around the world. In the past, these meetings have given way to market-shaping events such as monetary easing. As for this year’s meeting, most experts aren’t expecting much, if anything. After the meetings the Fed’s Chairman, Ben Bernanke will speak publicly to give his notes on the event.  “I don’t think he’s going to say anything new,” added Catherine Mann, a finance professor at Brandeis University.

At 1:00 pm (EDT), the APMEX precious metals spot prices were:

  • Gold, $1640.00, Down $1.40.
  • Silver, $29.58, Up $0.04.
  • Platinum, $1526.60, Up $17.80.
  • Palladium, $630.40, Up $4.70.

APMEX’s Account Managers now have extended hours Mondays through Thursdays and are here to serve you until 7 p.m. (CDT)! Or call us Fridays until 5 p.m. (CDT)! 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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The Gold price experienced little movement today, settling just above $1,600 for most of the day.

 

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.

 

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Morning Gold & Silver Market Report – 8/1/2012

JOBS REPORT BETTER THAN EXPECTED; METALS TURN DOWN

Precious Metals, stock markets, and currency trades alike are relatively flat this morning.  The markets all seem to be waiting for a decision from the U.S. Federal Reserve at the conclusion of the two-day policy meeting today.  A big decision, such as a third round of quantitative easing (QE3), is not expected out of this meeting, however many analysts suggest that lower interest rates could be extended into 2015.

The European Central Bank (ECB) also has an announcement due this week, though comments from Bundesbank President Jens Weidmann has dampened expectations for that announcement.  Weidman said that the ECB’s independence “requires it to respect and not overstep it’s own mandate.  We are the largest and most important central bank in the Eurosystem and we have a greater say than many other central banks.”

Precious Metals turned slightly negative (with Silver and Platinum taking more significant downturns) after the release of the ADP jobs report this morning.  The economy saw more jobs added than expected for the month of July according to this estimate.  Good news for the economy perhaps makes it less likely for the Fed to announce drastic measures like QE3, which explains the turn in Precious Metals prices.

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

  • Gold, $1,607.00, Down $5.10.
  • Silver, $27.34, Down $0.68.
  • Platinum, $1,395.70, Down $21.20.
  • Palladium, $586.90, Down $4.70.