GOLD PRICE RISES; CENTRAL BANKS’ ABILITIES QUESTIONED
Gold’s price began to ascend after positive numbers were released from this morning’s nonfarm payrolls report, which showed an estimated 163,000 jobs were created for July. For many investors, the upbeat data could begin to erase any chance of further economic stimulus in the United States. Stephen Stanley, chief economist at Pierpoint Securities, said, “Even with the better than expected payroll number, it’s not sufficiently big to change the big picture view. The economy is growing, but not at a satisfactory rate to bring down unemployment. If the Fed had considered doing QE3, I suspect today’s number pushes them half a step back.”
PIMCO’s Mohamed El Erian said he firmly believes the world’s central banks cannot be looked upon to save everyone from their financial crisis. The Bank of England, the European Central Bank (ECB) and the Federal Reserve all had individual meetings this week to disclose the norm that each would assist with future stimulus if the situation calls for it. El Erian suggests that other government entities should step in with better suited policy tools before central bankers resourceful system stops working. ECB President Mario Draghi seems to hold the same sentiment, saying, “Central banks cannot replace governments.”
At 1 p.m. (EDT), the APMEX Precious Metals spot prices were:
- Gold, $1,604.20, Up $15.60.
- Silver, $27.79, Up $0.68.
- Platinum, $1,406.10, Up $18.30.
- Palladium, $579.20, Up $10.30.
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