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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Weekly Gold and Silver Market Recap for Aug 24, 2012 By Nicholas Wilsey

Contact Nicholas at Nicholas.Wilsey@APMEX.com

Gold prices move upwards on market news:

Gold has had quite a week of positive gains this week. Starting the week around the $1613 per ounce and at mid-day Friday the yellow metal was around the $1672 per ounce. On Tuesday the Gold price was at a two month high, tracking the euro upward. VTB Capital analyst Andrey Kryuchenkov said, “A break above $1,630 is very significant, as we breach the June-July and early August range. Buy orders were triggered, with the dollar index also slipping below support … at early July lows. This is on speculation that the ECB (European Central Bank) will act.” Kryuchenkov went on to say that as normal, Gold is trading against the dollar in this case. As the week went on, so did the upswing in the gold market. The gold price has moved more this week than in the past four months. The movement reflects growing eagerness for the Federal Reserve to provide further stimulus measures to boost the economy. Adam Klopfenstein at Archer Financial Services Inc. said, “Gold is exploding as inflation concerns are back. A combination of rising commodity prices and the chances of more easing coming in the U.S. is stoking inflation worries.” Michael Gayed of Pension Partners LLC said, “Gold is surging on renewed expectations of inflation rising after easing.” During two rounds of quantitative easing, from December 2008 to June 2011, the Gold price jumped 70 percent. All eyes continue to be on the Fed’s Jackson Hole, Wyo., economic symposium for more signs of QE3. That meeting is to be held late next week.

Europe had a rare positive week:

In Europe, there was an unusual sight in the financial reports: Positivity. The euro jumped to a seven-week high on the hope that the European Central Bank will be able to help the struggling region with a stimulus package. “The market has moved to the belief that (the ECB) is going to do whatever it takes,” said William Larkin, fixed-income portfolio manager at Cabot Money Management in Salem, Massachusetts. There are meetings scheduled in the next few days between leaders in the area to discuss possible options. Spain has begun negotiations with eurozone partners over the requirements necessary to lower its borrowing costs, but that country has stopped short of requesting an official bailout. The strategy currently in favor includes a combined attack by the European rescue fund (EFSF) and the European Central Bank (ECB) as they purchase Spanish debt in the primary and secondary markets. Spain’s borrowing costs are at record levels since the launch of the euro 13 years ago. “Negotiations have started and are well under way. Right now, the preferred option, the one that is being actively discussed, is for the EFSF to buy bonds on the primary market and for the ECB to buy bonds on the secondary,” one of the sources told Reuters on condition of anonymity. Two of the main players in the European talks met this week. German Chancellor Angela Merkel has engaged in talks with Greek Prime Minister Antonis Samaras with both asserting their allegiance to the euro.

 

The United States Federal Reserve ponders more monetary easing:

The precious metals markets saw an upswing this week and one of the main components of that was the idea of another round of monetary easing from the U.S. Federal Reserve. In prior cases of easing the effect to metals were positive. Easing is used to stimulate the economy and is based on how the good or bad the economic conditions are. One of the main issues the Fed has had to deal with is the mixed signals reports have shown as of late. There was a report that showed leading economic indicators in the country were up 0.4% in July. This report is considered a good indication of the outlook of the economy. “The expansion continues, no double-dip recession, just continued moderate, sub-par growth,” said John Silvia, chief economist at Wells Fargo. Then the release of the weekly jobless claims report was released. After an upward revision from last week’s numbers, the report showed increases across the board in new claims, existing claims, and the four week moving average. The jobless numbers gave way to more talk of easing.  Even people inside the Federal reserve were sending mixed messages. The St. Louis Federal Reserve president said that more easing may be unnecessary. Today, one of the longtime supporters of further quantitative easing by the Fed, Chicago Fed President Charles Evans, stated his view on the matter. “The outlook for growth is 2 percent, if we are lucky 2.5 percent, over the next 18 months to two years. Back in the spring, we thought it was going to be 2 1/2, 3 percent. … We stepped down our outlook; unemployment is 8.3 percent; there’s a lot of reason to do more,” he said. Next week Federal Reserve Chairman Ben Bernanke will speak at the annual meeting in Jackson Hole, WY. “Given all the mixed messages, the Jackson Hole symposium next Friday is building up to be a key event as we look forward to the latest download from the chairman himself,” said James Reid of Deutsche Bank.

 

Gold prices are on the move

FRANKFURT AM MAIN, GERMANY - SEPTEMBER 27:  Th...

(Image credit: Getty Images via @daylife)

Precious Metals continue to move upward as investors continue to view the recently released Federal Reserve policy meeting minutes in a positive light.  Hopes continue to grow that the Fed will take some action soon to boost the economy. “The default action has changed from do nothing to do something,” Mitsui Precious Metals analyst David Jollie said. “This means that we can expect to see some action soon, but the latest minutes imply the Jackson Hole and the September 12-13 meetings are not likely to see QE3 launched.”   The Platinum price is still feeling the effect of labor interruptions as clashes between the police and striking miners in South Africa have reached a death toll of 44 people.

Spain has begun negotiations with eurozone partners over the requirements necessary to lower its borrowing costs, but has stopped short of requesting an official bailout.  The strategy currently in favor includes a combined attack by the European rescue fund (EFSF) and the European Central Bank (ECB) purchasing Spanish debt in the primary and secondary markets.  Spain’s borrowing costs are at record levels since the launch of the euro 13 years ago.  “Negotiations have started and are well under way. Right now the preferred option, the one that is being actively discussed, is for the EFSF to buy bonds on the primary market and for the ECB to buy bonds on the secondary,” one of the sources told Reuters on condition of anonymity.

Concerns over Europe and its debt situation are dragging on US stocks, with the S&P 500 heading to a weekly decline. “People aren’t willing to invest,” said Stephen Hammers, the chief investment officer at Compass EMP Funds. “If Europe gets worse, U.S. investors will see that as a warning sign.”  Adding to the concern are comments from German Finance Minister Wolfgang Schaeuble stating that giving Greece more time would not solve its problems and cost investors.

At 1:00 p.m. (EDT), the APMEX

Precious Metals spot prices were:

  • Gold, $1,674.00, Up $35.00.
  • Silver, $30.72, Up $1.08.
  • Platinum, $1,557.70, Up $30.20.
  • Palladium, $657.50, Up $27.30.
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Gold at a two-month high, breaks key level

 

Gold prices are at a two-month high this morning, tracking the euro upwards.  VTB Capital analyst Andrey Kryuchenkov said, “A break above $1,630 is very significant, as we breach the June-July and early August range.  Buy orders were triggered, with the dollar index also slipping below support … at early July lows.  This is on speculation that the ECB will act.”  Kryuchenkov went on to say that as normal, Gold is trading against the dollar in this case.

Today’s trading aside, the dollar has enjoyed a rally lately on risk aversion.  However, that could all be undone, and the culprit could be the Federal Reserve.  Simon Derrick of BNY Mellon said, “If you look at the dollar’s performance over the last few years when quantitative easing (QE) was introduced, the dollar was absolutely weaker… were they to reintroduce QE, would that reintroduce dollar weakness?  Absolutely.”  Investors are looking to the Jackson Hole Economic Symposium, scheduled for next week, for a sign that another round of QE is on the horizon.

Today’s rally in the euro could be things getting better for the euro before they get worse.  Jane Foley of Rabobank International said, “The market may be optimistic that the (European Central Bank) will act to subdue peripheral yields in September, but that implies that there is plenty of scope for disappointment.”  This scope for disappointment is something that is common when the market pre-prices events such as central bank interventions that don’t always see the light of day.

At 9:34 a.m. (EDT), the APMEX Precious Metals spot prices were:

  • Gold, $1,638.80, Up $17.40.
  • Silver, $29.31, Up $0.61.
  • Platinum, $1,507.00, Up $7.80.
  • Palladium, $621.80, Up $12.60.

APMEX’s Account Managers now have extended hours Mondays through Fridays and are here to serve you until 8 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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Investors waiting for QE3

 

The stock market is down today as American investors paused following six straight weeks of gains on the Dow Jones Industrial Average. Also, European officials exposed a supposed plan to cap European bond yields, which hindered investor confidence even as the European Central Bank insists that no decision on the matter has been made.

The dollar is trading down against the euro today. Economists and investors alike are awaiting any possible hints that the United States will embark on a third round of quantitative easing (QE3) from the minutes of the latest meeting of the Federal Open Market Committee (FOMC), set to be released Wednesday. Modestly positive data from the recent FOMC meeting point to delaying QE3. Bill Stone, chief investment strategist at PNC Asset Management Group, said, “Even though the minutes are going to reflect they are leaving the door open, the odds have fallen since then because we’ve seen improvement in some of the data.” However, Bruce Bittles, chief investment strategist at Baird, believes newfound investor confidence is potentially risky. He said, “Investor sentiment has turned more optimistic in recent weeks. This could be problematic, given that sentiment is approaching extreme optimism at a time when the seasonal headwinds begin to surface.” Investors will wait to see if these seasonal headwinds will effect Precious Metals as the traditionally slow summer months come to an end.

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

  • Gold, $1,621.60, Up $3.70.
  • Silver, $28.68, Up $0.57.
  • Platinum, $1,498.70, Up $24.60.
  • Palladium, $608.60, Up $2.00.

 

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End of week report: Gold’s Move Tied To Central Bank Action?

 

Gold’s Move Tied To Central Bank Action?:

Quantitative easing (QE) from either the European Central Bank (ECB) or the Fed seems to be the key factor in a rally for the price of Gold. Should either central bank announce a round of QE, prices are likely to increase due to the results of such action all being supportive of the Gold price. Investors shouldn’t be surprised to see action from Europe before the U.S., however. London’s Marex Spectron said in a note, “The eurozone appears to continue to struggle, while the U.S. keeps surprising the market with positive figures. This only enhances the chance the ECB is more likely to act before the Fed.”  The upward push on Gold is being kept in check somewhat by the mixed United States economic data that suggests the U.S. Federal Reserve will continue its “wait and see” attitude. The Jackson Hole meeting at the end of this month could bring into focus what central banks are planning to do. “After Jackson Hole, the markets will hopefully have a better idea,” said Afshin Nabavi, head of trading at MKS Finance. “Until then, we should continue trading within this range.” A lack of liquidity over the quiet summer months was preventing Gold from moving higher, he said.

Weakening Rupee Hurts Demand:

Physical demand for Gold is taking a hit in India now. That country has been the world’s largest consumer of Gold, in large part due to its high demand for use in jewelry. The two factors that are playing into the softening demand are an increase in import duties and a weak Indian rupee, which drives the local price of Gold higher. Combined with a stronger dollar and weaker euro, the rest of the world is seeing the Gold price hover around $1,600 per ounce. With currency trade on one end and the desire for a safe haven investment on the other, Gold seems to be tugged by both sides at the moment, waiting for a potential announcement on QE from either the United States Federal Reserve or the European Central Bank. India’s festival season has begun and will peak in November. This is a time for weddings and giving Gold gifts.

Mine Violence Sparks Platinum Prices:

Platinum prices have spiked Thursday as a bloody conflict between South African police and striking miners at Lonmin’s Marikana Platinum mine resulted in many injuries and an unconfirmed number of fatalities. The police moved to disperse the estimated 3,000 miners by force after talks broke down with the Association of Mineworkers and Construction Union. Today’s violence caps off a week of fighting that has already seen ten deaths, two of which were police. Lonmin said it had lost the equivalent of 15,000 ounces of Platinum from the six-day disruption, and was unlikely to meet its full-year production target of 750,000 ounces.  Friday saw the confrontation between police and South African miners at Lonmin PLC has escalating, causing Platinum to rise drastically for the second straight day. South Africa produces 75 percent of the world’s Platinum, and concern over its output could spur further gains.

 

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