GOLD PRICE HOVERS; AMERICA’S ECONOMY KEEPS PACE
The Gold price has been mostly flat this week in anticipation of the United States Federal Reserve possibly giving some direction to the market. This week’s meeting in Jackson Hole, Wyo., has been the center of attention for economists. On Friday, Fed Chairman Ben Bernanke will address the public. While the question remains whether there will be another round of monetary easing, if the answer is “no,” it could affect Gold’s price. “We see near term risks of a reversal if Jackson Hole does not deliver what the market is hoping for,” said Nick Trevethan, senior metals strategist at ANZ in Singapore.
The issues around the European debt crisis have been highly debated among the region’s leaders. Today, European Central Bank (ECB) President Mario Draghi has taken exception to criticism by German bankers and politicians. Draghi was quoted in a German newspaper as saying, “The ECB is not a political institution. But it is committed to its responsibilities as an institution of the European Union. As such, we never lose sight of our mission to guarantee a strong and stable currency. The banknotes that we issue bear the European flag and are a powerful symbol of European identity.”
In the U.S.A., a trend of economic growth could hamper any decision to embark on another round of easing by the Federal Reserve. The discussion is surrounding the small amount of growth and whether it is enough to sustain a positive direction moving forward. The United States’ gross domestic product (GDP) went up in the second quarter by 1.7 percent, which was 0.2 percent more than a previous estimate. The GDP is seen as a key indicator of the economy. While there was improvement, many believe it was at a level low enough to warrant more action by the Fed.
At 1:01 pm (EDT), the APMEX Precious Metals spot prices were:
- Gold, $1,660.00, Down $8.20.
- Silver, $30.86, Down $0.11.
- Platinum, $1,520.90, Down $0.50.
- Palladium, $635.50, Down $5.70.
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