Morning Gold & Silver Market Report -- 8/23/2011
(Ryan Schwimmer),
APMEX - Commentaries
GLOBAL EQUITIES UP, GOLD FALLS BELOW $1,900
Gold traded higher, well over $1,900 an ounce, overnight, but has since given up those gains thanks to global stocks being up. Silver and platinum have mostly tracked gold overnight, while palladium has pared some of its early morning losses. Citigroup strategists said, regarding raising their forecasts for gold, "Fears about sovereign defaults and currency debasement have left many investors concerned about switching from equities into government bonds, and cash hardly looks an attractive alternative when real rates are negative. Gold has therefore been the main beneficiary of all these concerns."
The markets are up mainly on speculation that Federal Reserve Chairman Ben Bernanke will signal that he is ready to put forth a third round of quantitative easing (QE) later this week. A meeting of international central bankers is to be held this Friday in Wyoming, and last year's meeting saw Bernanke signal the coming of QE2.
The situation in Libya is moving along, and NATO support is allowing rebels to approach Muammar Gaddafi's headquarters in Tripoli this morning. The sentiment regarding this situation is that it's all but over for Gaddafi, and that the sooner this conflict is over, the oil markets may see some relief.
At 8:00 am (CT) the
APMEX precious metals spot prices were:
Gold - $1,880.70 -- Down $13.20.
Silver - $43.15 -- Down $0.29.
Platinum - $1,893.20 -- Down $12.50.
Palladium - $764.50 -- Down $2.60.
Mid-Day Gold & Silver Market Report -- 8/23/2011
(Peter LaTona),
APMEX - Commentaries
Precious Metals Retreat as the Stock Market Advances -- The morning trading hours see gold, silver, platinum and palladium are all giving back a portion of their recent gains. The most likely scenario is that with the rapid rise of the past two weeks, some investors have decided to lock in gains. A short term correction is not unusual, when prices have moved up as quickly as they have this month. There will be investors waiting on the sideline to purchase on the dips.
The stock market is up triple digits in morning trading, as it resumes its pattern of high volatility. This increase is caused impart by speculation of what Fed Chairman Bernanke will announce after the Fed meeting on Friday. The market rally is on the expectation there will be a QE3. Other news supporting the positive start is that list of "problem banks" has declined for the first time since 2006.
Former Fed Chairman Alan Greenspan said today, "The euro is breaking down and the process of its breaking down is creating very considerable difficulties in the European banking system." Deterioration of the euro could lead to even more slowing of the U.S. economy. On August 7, while appearing on "Meet the Press," Greenspan commented that the chance of the U.S. experiencing a double-dip depression depended on Europe and not the United States.
Closing Gold & Silver Market Report -- 8/23/2011
(Peter LaTona),
APMEX - Commentaries
Stocks Up Over 300 Points -- Precious Metals Retreat of Recent Highs
Continued poor economic data has spurred expectations that the Fed will have to take action to get our economy moving again. All eyes are on Friday's Fed meeting in Jackson Hole. Clearly, traders are anticipating another form of QE2 to be announced. The Dow Jones Industrial Average rose by 322 points today. There are many fund managers who feel Chairman Bernanke must be feeling pressure from the stock market to respond.
Of course, there are those who warn not to expect much of anything from Friday's announcement. Steve Liesman of CNBC gives three reasons why Bernanke could very well disappoint those expecting QE3. First, the Fed just took substantial action when they announced they would keep interest rates low through 2013. Second, just because QE2 was announced at the same time last year does not mean QE3 will be announced this year. Third, the recent policy change that announced extended low interest was met by much dissent within the group of Federal Reserve Board Members. New initiatives could have even a tougher time.
The stock market did slip momentarily today as an earthquake shook the Eastern Seaboard. It measured 5.9 on the Richter scale and was centered near Richmond, Va. Tremors from the quake were felt as far away as Boston, NYC and Washington, D.C. Gold prices can be affected by natural disasters severe enough to drive stocks prices down and turn investors towards safe haven investments. The East Coast may also be bracing for a category four hurricane later in the week.
At 4PM (CT) the
APMEX precious metal prices were:
Gold price - $1,839.80 - down $23.50
Silver price - $42.11 -- down 30 cents
Platinum price - $1,870.00 -- down $11.10
Palladium price - $764.00 -- down $3.00
Posted 08/23/2011 11:57 am
