THE PRICE OF GOLD AND CRUDE OIL STABILIZE
Precious Metals across the board remained flat through the day. A belief that further stimulus measures will be pushed out by central banks is providing the substance Gold needs now. Charles Nedoss at Kingsview Financial said, “Continued hopes of more quantitative easing in key economies and fears of inflation have supported Gold. Markets still expect help from central banks is going to materialize sooner or later, and prices for commodities such as oil and grains have crept up, feeding fears of inflation.”
Crude oil is steady as the United States economy and dollar has regained strength. Addison Armstrong at Tradition Energy said, “The dollar is stronger, and that’s likely to keep a lid on prices.” Jason Schenker at Prestige Economics LLC said, “The positive U.S. economic data is having an impact on crude. These are positive growth signals. The trade number is a sign that second quarter GDP will be revised higher.”
The second largest bank in Germany, Commerzbank, issued a bleak outlook today after it stated the possibility it may not pay a dividend in 2013. Commerzbank received an 18 billion euro bailout as the Lehman Brothers collapse occurred along with the financial crisis. Most recently the bank has suffered through a sluggish economic recovery with a debt crisis infecting most of Europe. “The greatest downside risk remains an uncertainty shock from an escalation of the sovereign debt crisis -- i.e. the collapse of the monetary union,” Commerzbank said in its quarterly report, adding it thought that risk was higher now than in autumn last year.
At 5 p.m. (EDT), the APMEX Precious Metals spot prices were:
- Gold, $1,618.20, Up $3.70.
- Silver, $28.19, Unchanged.
- Platinum, $1,414.80, Up $3.60.
- Palladium, $586.00, Down $2.00.
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