Mid-Day Gold & Silver Market Report, 6/8/2012

CONCERN FOR EUROPE SPREADS; U.S.A. ECONOMIC SURVEY SHOWS HOPE  

Gold’s price began dropping Thursday on investors’ disappointment with Federal Reserve Chairman Ben Bernanke’s testimony about America’s economy. Bernanke offered no signal the Fed would stimulate the economy immediately, which frightened the market. Gianclaudio Torlizzi from T-Commodity said, “The outlook for Precious Metals in the medium term, however, remains positive because the central banks will have to undertake an expansive monetary policy sooner or later. They are just waiting for the right time; they don’t want to use the last cartridge too soon.”

President Barack Obama expressed concern with Europe’s financial problems while speaking at a White House news conference. Investors fear that Europe’s economic crisis soon will create issues in the United States. Obama said, “The sooner they act, the more decisive and concrete their action, the sooner people and markets will regain some confidence.”

In the CNBC All-America Economic Survey, 49 percent of Americans said the economy is poor and they believe the country has hit its lowest point since the recession began in 2008. Expectations for the next 12 months are positive, as respondents said they believe that home prices will rise, which is the first time since 2007 that Americans have felt this way. 

At 12:17 p.m. (EDT), the APMEX Precious Metals spot prices were:

• Gold, $1,590.80, Up $2.80.
• Silver, $28.56, Down $0.06.
• Platinum, $1,428.80, Down $14.10.
• Palladium, $613.00, Down $12.80.

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