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