Closing Gold & Silver Market Report, 07/03/2012
GOLD PRICE ENDS HIGHER ON HOPES OF MORE EUROZONE STIMULUS
The Gold price closed at its highest point in two weeks today on hopes that the European Central Bank (ECB) will announce more stimulus measures to buoy a floundering economy in the 17 nation euro currency union. Expectations are that any announcement of stimulus by the ECB would be followed by similar measures from other major central banks.
Christine Lagarde, managing director of the International Monetary Fund, warned of a coming crisis when the United States crosses over the fiscal cliff looming in the next 12 months. “Fiscal cliff” is Washington, D.C., insider terminology for the expiration of a set of large tax cuts combined with huge cuts in federal spending totaling around $4 trillion, which would take an act of Congress to prevent. Lagarde said that a failure by lawmakers to act would cause a severe contraction of the American economy, sending already tepid GDP growth to levels near zero. In the same announcement, the IMF lowered its expectation of 2013 GDP growth to 2.25 percent from 2.4 percent, even if Congress were to act to prevent the economy from falling over the fiscal cliff.
The same stimulus anticipation that has lifted Gold prices also lifted oil prices today, helped by news that the Iranian Parliament is working on a law to block the Strait of Hormuz to oil tankers, shutting off a large part of the world’s oil supply. Any blockade attempted by Iran would likely be interpreted as a violation of international law.
At 5 p.m. (EDT), the APMEX Precious Metals spot prices were:
- Gold, $1,618.80, Up $19.60.
- Silver, $28.30, Up $0.74.
- Platinum, $1,490.20, Up $33.40.
- Palladium, $600.60, Up $21.60.
APMEX’s Account Managers now have extended hours Mondays through Thursdays and are here to serve you until 8 p.m. (EDT)! Or call us Fridays until 6 p.m. (EDT)! If you have any questions about investing in Precious Metals or simply would prefer to place your order by telephone, we are here to help.