Closing Gold & Silver Market Report, 8/20/2012
FEAR DRIVES PRECIOUS METALS PRICES
Bullion prices have risen on investors’ hopes for further stimulus measures from policy makers. Commenting on a higher Gold price today, Chintan Karnani, chief analyst at Insignia Consultants in New Delhi, said, “Prices continued to trade in a tight range amid a lack of major news from the U.S. or Europe.” Investors began buying more Platinum on growing concerns out of South Africa that there may be a shortage in that metal’s production after 44 people were reported killed during a strike at a Lonmin mine. “Platinum could test its 200 day moving average above $1,500 on the possibility that the Marikana mine can be shut down for an extended period of time or that strike ends up spreading to other mines,” said Phillip Streible at futures brokerage R.J. O’Brien.
Steve Cortes, founder of research and consulting firm Veracruz, is confident on his prediction that China’s slower than normal financial trading is a sign that its economy is declining far more than investors realize. Cortes said, “China is trading at its lowest levels since the 2007 crisis, and that’s a big problem for the markets.” Cortes also confirmed that he is optimistic with the American economy moving into a strong territory. Cortes said, “We’re getting a lot of good reports -- not just housing, but unemployment claims are falling, retail chain store sales are improving, and we just got better confidence data.”
At 5:05 p.m. (EDT), the APMEX Precious Metals spot prices were:
- Gold, $1,621.90, Up $4.00.
- Silver, $28.87, Up $0.76.
- Platinum, $1,492.70, Up $18.60.
- Palladium, $608.60, Up $2.00.
APMEX’s Account Managers now have extended hours Mondays through Fridays and are here to serve you until 8 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.