JOBLESS CLAIMS LIFT METAL PRICES; ANSWER TO EUROZONE CRISIS IS SIMPLE
Precious metals are rebounding this morning as the dollar hit a three week low, and new unemployment claims missed expectations again. The Federal Reserve meeting Wednesday seemed to help the eurozone more than the American economy. Credit Suisse analyst Tom Kendall said, “The message out of the Fed didn’t really change much. We had a little sell off (in Gold) immediately after the statement came out, but it quickly recovered.”
With expectations for a drop in American jobless claims to 375,000, the experts were stumped again when the number came out at 388,000 (this is also following an upward revision from two weeks ago). The four week moving average also jumped to the highest level of the year. U.S.A. stocks fell further after the report was released.
What is the answer to the eurozone debt problem? Nearly all the experts agree, and it’s simple: growth. The problem within that answer, however, is how to achieve such growth. Yesterday, European Central Bank President Mario Draghi said that a “growth pact” should be reached in the eurozone. Carl Weinberg of High Frequency Economics wrote, “This is a pleasant and constructive turn of the language we have been hearing. It is at least compared to the ‘reduce the deficit or die’ theme that has dominated the euroland crisis so far. However, no one, not even us, has a clue about what Dr. Draghi actually means or is proposing.”
At 9 a.m. (EDT), the APMEX precious metals spot prices were:
- Gold - $1,655.40 - Up $12.60.
- Silver - $30.88 - Up $0.45.
- Platinum - $1,558.00 - Up $11.70.
- Palladium - $660.10 - Up $4.00.
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