Anxious Investors Cause Mild Trading

Gold and Silver investors are anxious to see the outcome of events over the next few weeks, specifically regarding another round of quantitative easing. Highly anticipated speeches scheduled for the end of the week by Federal Reserve Chairman Ben Bernanke and European Central Bank chief Mario Draghi have caused investors to be guarded in Monday trading. Their apprehension has brought about a slight dip in the dollar which has conversely moved precious metals prices up.

The upcoming Jackson Hole meeting evokes memories from 2010 when Bernanke gave a speech that many believe set the basis to proceed with the Fed’s second round of quantitative easing. However, many financial specialists believe the Jackson Hole meeting will not be the critical event that could trigger further government financial stimulus this time around. “The critical period is really from Friday to the twelfth (of September) – the constitutional court decision,” said Paul Mendelsohn, chief investment strategist at Windham Financial Services in Charlotte, Vermont. “(Bernanke) may not show his hand at Jackson Hole – he may wait until the twelfth to show his hand because he may want to wait until after the ECB meeting.”

At 1 p.m. (EDT), the APMEX Precious Metals spot prices were:

  • Gold, $1,672.60, Up $1.20.
  • Silver, $31.14, Up $0.43.
  • Platinum, $1,553.80, Down $1.60.
  • Palladium, $656.80, Up $3.10.