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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John Paulson has more than 44 percent of his equities now in gold

 

John Paulson has more than 44 percent of his equities now in gold. At this time last year Mr. Paulson had 25 percent in the yellow metal. That’s an increase of 19 percent of his 21 billion dollar hedge fund towards gold. The last time he was this invested in the metal was March 2009, when he had about 46 percent invested. Gold prices went lower in the second quarter, the largest loss since September 2008.

Today’s movement in the gold market has shown the affect another round of monetary easing could have on pricing. Just because there have been signs of an economic slowdown in the U.S.A., some economist think it is not a foregone conclusion that the Fed will act. “While further monetary easing remains a viable option for the Fed, the timing may be delayed for more dire conditions,” said Michael Woolfolk, a senior currency strategist at BNY Mellon in New York. In the second week of next month there will be a meeting of the Federal Reserve that could help outline the direction they will be taking.

In the last few months there has been talk of Greece making an exit from the European Union. The leaders of the union promised to do everything in their power to keep it together. The intention may be good, but the reality could be Greece leaving sooner than later. “It’s a question of when, not if. Next month there is the ratification of the ESM [European Stability Mechanism] in Germany and you may well see a situation where Greece leaves the euro, the ESM is ratified and Spain and Italy then go in and ask for the money. There is a feeling that time is running out,” Paul Day, Chief Strategist, at Market Securities said in an interview.

At 1:07 pm (EDT), the APMEX precious metals spot prices were:

  • Gold, $1604.00, Up $3.10.
  • Silver, $27.86, Down $0.01.
  • Platinum, $1397.10, Down $3.00.
  • Palladium, $579.40, Down $0.60.

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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