Housing and Consumer Confidence Reports Due

 

Stocks are holding their own Tuesday morning as investors are waiting for housing and consumer confidence data. At 10 a.m. (EDT), the July home-price index and the September consumer-confidence index will be released. Christian Tegllund Blaagjerg, Chief economist at FIH Erhvervsbank, said, “I think we’re going to see a very bullish housing market. I think the bottom was reached awhile ago. We’re not on a Ferrari-like recovery path, but still more like a Chevy pickup truck, [with] stable and continuing improvement.”

Gold is gaining ground against a stronger dollar today. The move was in response to data that central banks added to their Gold holdings in July and August. The countries leading the charge were South Korea with an increase of 16 tonnes and Paraguay with an addition of just over 7.5 tonnes. Gold is on a four-month positive trend, up 4.6 percent in September alone. Daniel Smith, an analyst at Standard Chartered said, “Ultimately, I think it’s quite likely we will get above $1,800 before the year-end, so maybe a month of sideways trading possibly and then generally trending higher in the next six months to a year.”

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

  • Gold, $1,773.60, Up$10.00.
  • Silver, $34.39, Up $0.40.
  • Platinum, $1,635.50, Up $12.50.
  • Palladium, $641.30, Down $4.20.

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.

 

Enhanced by Zemanta

Wealth manager supports Gold in portfolios

Fluctuations in the Gold price the past two weeks have made investors reluctant to buy the metal. However, Michael Yoshikami, founder and chairman with Destination Wealth Management, spoke with CNBC regarding reasons why Gold should be included in one’s portfolio. Yoshikami takes into account how central banks have most recently become net buyers of Gold to protect themselves and diversify out of unstable currencies. Yoshikami said when inflation materializes, Gold will provide a level of inflation protection, because tangible assets tend to perform well in inflationary environments.

Consumer sentiment in the United States rose to its highest point in more than four years in May. Optimism in the air as a healthier economy is beginning to develop. Richard Curtin, head of the University of Michigan’s consumer survey, reflected on how long the consumer sentiment will remain positive. He said, “The most likely prospect is that job growth resumes at a modest pace and that confidence remains largely unchanged until after the November election and decisions about tax policy are made.”

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

  • Gold, $1,567.60, Up $8.30.
  • Silver, $28.35, Up $0.10
  • Platinum, $1,427.20, Up $2.80.
  • Palladium, $592.00, Up $2.40.
Enhanced by Zemanta

Weekly Market Recap – February 3, 2012

Now that figures for January have come in, it’s clear that Gold kicked off the new year with a fresh start and a confident outlook. This past month was the strongest January for Gold in more than 30 years. In addition, prices for the precious metal rose more than 11% in January, the largest gain since August 2011. In a note this week, Ross Norman, chief executive of Sharps Pixley, wrote, “With Gold starting 2012 at a cracking pace … Gold may be poised to set fresh highs this year but earlier than many — ourselves included — would have expected.”  Gold still is viewed as directly tied to what is going on in Europe, and according to a note sent to investors this week by Commerzbank analysts, “Concerns about Greece and Portugal are keeping demand for Gold high and supporting the price. … The sovereign debt crisis will thus continue to preoccupy the markets for some considerable time yet and should support the Gold price.”

During a summit attended by leaders from 27 European Union (EU) states this week, a deal was reached on a permanent rescue fund for the eurozone, with 25 of the 27 European leaders present agreeing to back the German-inspired pact for budgetary discipline. The agreement on the European Stability Mechanism (ESM) – which will be worth about $500 billion euros and will go into effect a full year ahead of the previous timeframe of 2013 – is already being criticized internationally as too small to truly handle the debt exposure. Also coming out of the summit, the countries involved in the agreement have signed up for a tighter fiscal union in which the European Court of Justice had the power to fine countries that don’t stick to the budget deficits set by the EU.

There is fear that Portugal will be next in line to receive a bailout once Greece’s debt issues have been resolved. Edward Hugh, an economist in Barcelona, said, “It’s most likely that Portugal will say that it wants one of those, too.” According to Hugh, Portugal “…literally has nothing further to lose, except some of its debt burden.” Lisbon, Portugal’s largest city, is required to repay 9 billion euros of debt in September 2013.

There was positive news out of Germany this week, where unemployment levels reached a 20-year low in January. Germany’s economic expansion has helped soften the blow from the eurozone’s broader weakness. However, eurozone unemployment as a whole increased to 10.4%, the highest rate in the history of the EU.

Here in the U.S., the Case-Shiller report released this week showed that housing prices slid by 1.3% in November, with a 3.7% slide year-on-year. While the housing market seems to be improving, most homeowners are not seeing any part of that with the sliding prices, which have dropped to mid-2003 levels. Precious metals added to gains on the news. Also this week, private research group The Conference Board revealed that its Consumer Confidence Index fell from 64.8 to 61.1 in December, lower than the forecast of 68 that economists had anticipated. According to the Conference Board, although consumers were more positive about jobs, they were not as optimistic about their income prospects. The release of the latest unemployment figures on Friday showed that 243,000 new jobs were added in January, which was more than the 121,000 analysts had estimated.

This week, Christopher Wolfe of Fitch Ratings said that U.S. banks will face a continuing trend of erosion or core earnings this year if they do not offset revenue pressures by finding new ways to cut costs. President Barack Obama urged Congress this week to follow his plan to give homeowners a better chance at refinancing with historically low interest rates. The estimated cost of the President’s program is between $5 billion and $10 billion, which has Republicans already saying they will not support it. Federal Reserve President Ben Bernanke delivered a speech to Congress on Thursday of this week in which he warned about the risk to the U.S. of a sudden fiscal crisis and expressed his concerns about U.S. economic growth. Mr. Bernanke also defended Fed policy against harsh criticism that recent Fed decisions risked igniting inflation, saying that the decisions were necessary in an economy that is still struggling and that is vulnerable to shocks. Precious metals prices showed solid gains in response to Bernanke’s speech.

Pressure from the U.N mounted this week on Syria’s president. Arab leaders have urged the U.N. Security Council to help the Syrian people, claiming that Syria has failed to make reforms and that government forces continue to use deadly force against protesters. The uprising in Syria has endured for 10 months, and Western and Arab diplomats are calling for Assad to step down. Also in the Middle East, Iran’s supreme leader Ayatollah Ali Khamenei warned those who are enforcing an oil embargo against Iran, saying, “Sanctions will not have any impact on our determination to continue our nuclear course. In response to threats of oil embargo and war, we have our own threats to impose at the right time.”  The comments are expected to continue driving up oil prices. Gold traditionally has a positive correlation with oil, and like oil, geopolitical tension is one of the major driving factors for the price of Gold.

According to banking and financial services group UBS, Gold demand in India is significantly above average this year. India has been the largest Gold consumer in the world in recent years. UBS added that new investors are coming into the Gold market for the first time in three months, thanks largely in part to the potential for quantitative easing. UBS analyst Edel Tully said that such easing could give Gold “explosive ingredients” in 2012. In China, Gold buying set records during the week-long Dragon Lunar New Year holiday. The Chinese Ministry of Commerce released numbers showing that sales of Gold, Silver, and jewelry rose by 57.6% at Caibai, one of Beijing’s largest gold dealers. “To most Chinese nowadays, gold is more convenient to cash in than other investment instruments,” said Guan Qiang of Caibai.

WEEKLY SPOT PRICES

Gold: Spot Gold prices opened this week at $ 1,734.20. The high was on Friday, February, 3rd  at $ 1,765.90, while the low for the week occurred on Monday,  January 30th $ 1718.80. Gold ended the week down $7.20 at $1,727.00. This week, the most popular Gold bullion products were 2011 Gold American Eagles, 1 oz. Pamp Suisse Gold Bars, and 2011 1 oz. Gold Maple Leafs.

Silver: Spot Silver prices opened this week at $33.52. Silver reached a high of $34.39  on Friday, February, 3rd , while this week’s low for Silver occurred Monday,  January 30th at $33.04. Silver ended the week up $0.18 at $33.70. The most popular Silver products on APMEX.com this week were 2011 Silver American Eagles, 2011 Silver Maple Leafs, 1 oz. Silver Buffalo Rounds and 10 oz. APMEX Silver Bars.

Platinum: Spot Platinum prices opened this week at $1614.30 and ended the week up $10.50 at $1,624.80. Popular Platinum products this week included, 1 oz. Platinum Bars, 1/10 oz. Platinum American Eagles, and 1 oz. Platinum American Eagles.

Palladium: Spot Palladium prices opened this week at $688.20 and ended the week up $19.20 at $707.40. Palladium investors preferred 1 oz. Pamp Suisse Palladium Bars and Palladium Canadian Maple Leafs this week at APMEX.com.

Order Preciouis Metals online today at APMEX.com!

Keep up with APMEX news throughout your week with subscriptions to

APMEX Commentary via RSS feed and   APMEX Blog via RSS feed.

Share