Gold prices are on the move


(Image credit: Getty Images via @daylife)

Precious Metals continue to move upward as investors continue to view the recently released Federal Reserve policy meeting minutes in a positive light.  Hopes continue to grow that the Fed will take some action soon to boost the economy. “The default action has changed from do nothing to do something,” Mitsui Precious Metals analyst David Jollie said. “This means that we can expect to see some action soon, but the latest minutes imply the Jackson Hole and the September 12-13 meetings are not likely to see QE3 launched.”   The Platinum price is still feeling the effect of labor interruptions as clashes between the police and striking miners in South Africa have reached a death toll of 44 people.

Spain has begun negotiations with eurozone partners over the requirements necessary to lower its borrowing costs, but has stopped short of requesting an official bailout.  The strategy currently in favor includes a combined attack by the European rescue fund (EFSF) and the European Central Bank (ECB) purchasing Spanish debt in the primary and secondary markets.  Spain’s borrowing costs are at record levels since the launch of the euro 13 years ago.  “Negotiations have started and are well under way. Right now the preferred option, the one that is being actively discussed, is for the EFSF to buy bonds on the primary market and for the ECB to buy bonds on the secondary,” one of the sources told Reuters on condition of anonymity.

Concerns over Europe and its debt situation are dragging on US stocks, with the S&P 500 heading to a weekly decline. “People aren’t willing to invest,” said Stephen Hammers, the chief investment officer at Compass EMP Funds. “If Europe gets worse, U.S. investors will see that as a warning sign.”  Adding to the concern are comments from German Finance Minister Wolfgang Schaeuble stating that giving Greece more time would not solve its problems and cost investors.

At 1:00 p.m. (EDT), the APMEX

Precious Metals spot prices were:

  • Gold, $1,674.00, Up $35.00.
  • Silver, $30.72, Up $1.08.
  • Platinum, $1,557.70, Up $30.20.
  • Palladium, $657.50, Up $27.30.
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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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