Gold pulled on both sides; eurozone disappoints again

U.S. stock futures are trading higher this morning, while the Gold price is relatively flat again. The yellow metal’s price continues to be pulled in different directions due to the looming fiscal cliff dilemma. On one hand, investors see Gold as a safe haven, and the uncertainty facing the U.S. in the coming months has those investors concerned. On the other hand, there could be a “liquidity-driven risk event,” according to Daniel Brebner of Deutsche Bank, which would cause investors to cash out of Gold to hold the U.S. dollar.

Disappointing news in the eurozone continues, as a report showed that factory output in the region fell by the most since January 2009. Germany, normally a strong point for factory output, fell by a substantial amount. Expectations that the eurozone will see another recession (the second in three years) are rampant, and this report only makes it worse.

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

  • Gold, $1,729.80, Up $3.00.
  • Silver, $32.64, Up $0.09.
  • Platinum, $1,585.20, Down $1.40.
  • Palladium, $644.00, Up $6.40.

APMEX’s Account Managers now have extended hours Mondays through Thursdays and are here to serve you until 8 p.m. (EST)! Or call us Fridays until 6 p.m. (EST)! 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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GDP Report Boosts Dollar; Greece in More Trouble

Gold and Silver are trading flat as the U.S. dollar is being fueled by an improving GDP number released this morning. The U.S. economy grew 2.0 percent in the third quarter, thanks to improving home building and higher spending. This is the final report regarding economic growth before the presidential election next month, and was eagerly awaited by investors.

More trouble in the eurozone is helping the dollar’s rise. One eurozone official stated, “It is clear that Greece is off track and there is no chance they will cut the debt to 120 percent of GDP in 2020 as envisaged. It will be rather 136 percent, and this would be under a positive scenario of primary budget surplus, a return to economic growth, and privatization.” Reports out of the region say that Greece will need even more aid, this time to the tune of about $39 billion.

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

  • Gold, $1,713.30, Down $0.20.
  • Silver, $32.13, Up $0.03.
  • Platinum, $1,559.00, Down $7.30.
  • Palladium, $604.00, Down $1.50.

APMEX’s Account Managers now have extended hours and are here to serve you until 8 p.m. (EDT) Mondays through Thursdays! 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 and equities markets down again on world growth outlook

 

Trepidation continues to weigh on investors as the U.S. stock market opened to early losses this morning. A meager outlook for global growth and reduced earnings are the catalysts for market dips in recent days. “We have had a number of large companies reporting poor visibilities and that is going to continue,” said Michael O’Sullivan, head of portfolio strategy at Credit Suisse Private Banking in London. “Revenue growth is simply weak because the U.S. economy has slowed, the Asian economy has slowed and Europe is in recession.”

Gold is down this morning as negative forecasts for global economic expansion weigh on Precious Metals markets as well. Though Gold has realized three straight sessions of losses, the metal rallied to 11 month highs in the third quarter peaking at $1,795 an ounce. Long term investors are still seeking the security presented by the yellow metal as uncertainty remains pervasive in equities markets. “The long-running rally is intact, however, and we expect that Gold prices will revive after a period of consolidation,” said analysts at HSBC bank.

At 9 am (EDT), the APMEX Precious Metals spot prices were:

  • Gold, $1760.00, Down $2.50.
  • Silver, $33.92, Down $0.08.
  • Platinum, $1670.40, Down $21.90.
  • Palladium, $651.50, Up $7.70.

APMEX’s Account Managers now have extended hours and are here to serve you until 8 p.m. (EDT) Mondays through Thursdays! 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 and Silver Prices Decline in Morning Trading

 

Two forces are affecting Gold and Silver prices this morning. One is profit taking as traders take a portion of their profits off the table. The second is the rising U.S. dollar relative to the euro and other currencies. Investors are still digesting Friday’s jobs report, which stemmed the tide of the falling dollar. Today’s meeting of Europe finance ministers will be closely watched. Spain and Greece will be the hot topics. No decisions are expected today, but discussions will be the prelude for the next meeting in Brussels on Oct. 18-19 that will answer whether Spain will ask for a bailout and what to do about the Greek debt.

The situation in Greece has become so volatile that special preparations are being made for German Chancellor Angela Merkel’s visit on Tuesday. Chancellor Merkel’s call for austerity measures is not popular with the Greek populace. Greece is preparing for two days of strikes with over 7,000 plainclothes police and hundreds more undercover agents. Snipers will be stationed on rooftops throughout the city.

Despite recent strong gains in the U.S. stock market, investors are bracing for the worst earnings season since 2009. Analysts are expecting earnings to decline, after 11 quarters in a row of gains. These poor results are attributed to the slower than expected U.S. economic recovery and the overall economic slowdown worldwide.

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

  • Gold, $1,771.90, Down $8.40.
  • Silver, $33.96, Down $0.62.
  • Platinum, $1,684.40, Down $19.80.
  • Palladium, $653.50, Down $10.70.

APMEX’s Account Managers now have extended hours and are here to serve you until 8 p.m. (EDT) Mondays through Thursdays! 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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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.

 

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