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 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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