U.S. stocks dropped today following a five-week rally in the Dow Jones Industrial Average. The dip comes following news of disappointing economic data from Japan. Economists projecting 2.7% GDP growth for the country in the second quarter received figures that expansion fell short by reporting only 1.4% growth. Fred Dickson, chief market strategist at D.A. Davidson & Co. stated, “Japan was a little weaker than expected. It might raise hopes that there might be some central bank coordination, but I’m not seeing that in any of the markets today.”
The Gold price continues to trade flat at the halfway point today, even as the dollar is down against the euro for the first time in four sessions. Though the euro is up slightly, there are still expectations that the European Central Bank will soon step in with measures to stimulate a lagging European economy. Global head of currency strategy at Brown Brother Harriman, Marc Chandler said today, “The euro is well below the highs of last week and today we are seeing some short-covering, but the move today is generally uninspired in a lackluster session.” Economic analysts predict the euro to remain fairly steady until September 12 when the German constitutional court declares its decision regarding fiscal discipline and a proposed “rescue fund” for the eurozone. U.S. investors are also anxious at the prospect of more government stimulus as the much anticipated news of a third round of quantitative easing is expected to drive Precious Metals prices up dramatically.
At 1 p.m. (EDT), the APMEX Precious Metals spot prices were:
- Gold, $1,619.40, Down $1.90.
- Silver, $28.00, Down $0.17.
- Platinum, $1,394.60, Down $6.30.
- Palladium, $576.50, Down $7.30.