Closing Gold & Silver Market Report, 7/30/2012
TWO CONCERNS FOR EUROZONE: FUTURE AND CURRENCY
Gold’s price has maintained a slow increase today, as the main focus continues to be how the Federal Reserve plans to rebuild America’s financial system. Matt Zeman at Kingsview Financial said, “It is all going to ride on central bank action this week. Markets were quiet as traders were waiting to see whether the Federal Reserve and the European Central Bank will announce any measures when they meet this week. “This is a market that seems to want to go higher,” Zeman said of Gold. “The Fed and the ECB could throw some wild cards in there, but it looks like it will go higher” in the coming days, he said.
Investors are presuming the ECB may reveal more clues Thursday (as it announces its most recent interest rates) about potentially restarting its notorious bond buying program. Or the ECB might try America’s stimulus choice: quantitative easing. ECB President Mario Draghi said, “Within our mandate, the ECB is ready to do whatever it takes to preserve the euro. And believe me, it will be enough.”
There is growing concern for what the future holds in the eurozone regarding its 2½ year debt crisis. Unfortunately the answers are hard to find, as politicians are working around the clock to compile a successful plan. Peter Vanden Houte, an economist at ING, seems to have little confidence in Europe, saying, “As long as consumer and businesses continue to question the solidity of the monetary union, there’s little hope to see an upturn before long. Today’s dismal figures only increase the pressure on European policy makers to act decisively to stop the rot in the eurozone.”
At 5 p.m. (EDT), the APMEX Precious Metals spot prices were:
- Gold, $1,623.30, Up $3.00.
- Silver, $28.24, Up $0.65.
- Platinum, $1,418.70, Up $10.50.
- Palladium, $589.00, Up $16.10.
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