Spanish debt auction a success; Platinum tops

If you are looking for excitement in the U.S. stock market, you may be left wanting. Futures on the Dow and the S&P are not showing us much this morning; however, the euro took a stronger position against the dollar and yen in overnight trading when a Spanish debt auction lifted sentiment toward riskier assets. They sold 4.5 billion euros in new bonds at a lower cost than in previous auctions. This was a sign of growing confidence among investors in the recession prone area.

The Gold price traded in a tight range overnight despite the positive news for the euro. Andrey Kryuchenkov, capital analyst with VTB Capital, said, “We maintain our preference for wider ranges to hold on spot Gold prices as choppy macro trading prevails, with attention to U.S. December housing starts and weekly jobless claims later today.” The Gold price may begin to increase again when debt ceiling talks come back into focus. In positive news for Platinum, the metal surpassed Gold in overnight trading for the first time in 10 months.

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

  • Gold, $1,671.70, Down $13.40.
  • Silver, $31.19, Down $0.39.
  • Platinum, $1,685.90, Down $7.80.
  • Palladium, $723.00, Down $4.50.

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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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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Gold gaining momentum, Germany worried about U.S. debt

 

Spot gold is trading around six month highs today as the euro is gaining strength against the dollar. Gold has a positive relationship to the euro right now and over the past two months has grown to be at its most positive, a +0.75. There is growing expectations about what will come out of Thursdays Federal Reserve meeting; speculation is that a quantitative easing announcement could send the price of gold over $1,800.

German Finance Minister Wolfgang Schaeuble has brought into question the United States’ high level of debt. He is quoted saying in a speech to the lower house of parliament that “U.S. debt (is) a burden for the global economy.” He underscores the fact that the rest of the world is keeping their eye on the U.S. elections and is concerned about our ability to deal with it once the elections are over. This comes just after the U.S. reached an inauspicious $16 trillion debt.

Adding insult to injury, the U.S. trade gap widened in July. This was the first time in four months that demand for U.S. produced goods decreased. The gap grew 0.2 percent to $42 billion. The positive side to this is that is smaller than projected. The trade gap is due in part to stagnant economies in Europe.

At 9AM EDT the APMEX precious metals prices were:

  • Gold price – $1,736.10 – Up $5.30
  • Silver price – $33.82 – Up $0.19 cents
  • Platinum price – $1,608.00 – Up $3.20
  • Palladium price – $675.80 – Up $3.00

 

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Fear drives precious metals prices

 

Bullion prices moved their way up with investors being hopeful for further stimulus measures from policy makers, which increased gold’s price today.   Chintan Karnani, chief analyst at Insignia Consultants in New Delhi commented on what affected gold for the day by saying, “Prices continued to trade in a tight range amid a lack of major news from the U.S. or Europe.” Investors began purchasing more platinum with growing concern coming out of South Africa that there may be a shortage in the production of the metal after a reported 44 people were killed during a strike at Lonmin’s.  “Platinum could test its 200-day moving average above $1,500 on the possibility that the Marikana mine can be shut down for an extended period of time or that strike ends up spreading to other mines,” said Phillip Streible, at futures brokerage R.J. O’Brien.

Steve Cortes, founder Veracruz, a research and consulting firm is confident on his prediction that China’s slower than normal financial trading is a sign that its economy is declining far more than investors realize.  Cortes said, “China is trading at its lowest levels since the 2007 crisis and that’s a big problem for the markets.”  Cortes also confirmed that he is optimistic with the American economy moving into a strong territory.  Cortes said, “We’re getting a lot of good reports – not just housing – but unemployment claims are falling, retail chain store salesare improving and we just got better confidence data.”

At 5:05 p.m. (EDT), the APMEX Precious Metals spot prices were:

  • Gold, $1,621.90, Up $4.00.
  • Silver, $28.87, Up $0.76.
  • Platinum, $1,492.70, Up $18.60.
  • Palladium, $608.60, Up $2.00.

 

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Economic reports better than expected; Gold stagnates

 

American stock futures and Precious Metals rebounded this morning after two economic reports were released. The trade deficit narrowed to the smallest gap in nearly two years, and weekly jobless claims fell after economists expected an increase. The four week moving average of the jobless claims, however, increased slightly. Recently, good news for the American economy has worked the opposite way with Precious Metals, as good news makes the Federal Reserve less likely to institute another round of quantitative easing.

Economist David Rosenberg said the U.S. economy is not growing as quickly as it should. He said, “The overall story is that with the massive intervention by the U.S. government and the Federal Reserve, they did manage to terminate the Great Recession in the mid part of 2009, but the reality is that we never had much of a recovery, at least in the economy. And in terms of what we’re seeing going forward, I still think that there’s more downside risk than upside potential.”

The Gold price was steady this morning, though losses in the euro seemed to be trying to pull it down. Societe Generale analyst Robin Bhar said, “Gold seems to have gotten a foothold above the $1,600 level and seems to be relatively stable. It’s still showing this correlation to riskier assets. We’ve seen a bit of a rally in the oil market and equities, and Gold has kept a par with those moves.”  Bhar said he believes more stimulus from federal governments is needed to spur the Gold price higher at this point.

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

  • Gold, $1,613.40, Down $0.60.
  • Silver, $28.09, Down $0.10.
  • Platinum, $1,411.70, Up $0.50.
  • Palladium, $586.80, Down $1.20.

 

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