Closing Gold & Silver Market Report, 6/14/2012

U.K. CENTRAL BANK STIMULUS LIFTS MARKETS  

The United Kingdom Treasury and Bank of England are preparing to embark on two economic stimulus measures. The measures are designed to spur lending and give a boost to credit markets. In one measure, the Bank of England will create an additional 5 billion pounds per month, thereby increasing the money supply. The other measure will be an asset purchasing program, in which the central bank will purchase assets from private banks, and the private banks are to loan the cash to the public. “We are not powerless in the face of the eurozone debt storm,” said Chancellor of the Exchequer George Osborne. “The government -- with the help of the Bank of England -- will not stand on the sidelines and do nothing as the storm gathers.”

Despite negative economic data released this morning, stocks on American exchanges climbed higher today as speculation rose about further stimulus action by the Federal Reserve. “The only reason you could possibly be trading higher, based off of the morning economic data, is the odds of (further stimulus),” said Dan Greenhaus, chief global strategist at New York brokerage BTIG LLC. “There’s nothing in the morning data that’s ‘good.’” 

The Gold price climbed slightly on the stimulus news. Metals analyst James Steel said, “The data out this morning reignited the possibility of further U.S. easing, and that’s supportive to Gold. The market has been characterized with a lot of volatility due to market speculations about Federal Reserve monetary easing.”

At 1 p.m. (EDT), the APMEX Precious Metals spot prices were:

• Gold, $1,624.20, Up $4.80.
• Silver, $28.71, Down $0.34.
• Platinum, $1,494.70, Up $25.90.
• Palladium, $636.50, Up $12.30.

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