Mid-Day Gold & Silver Market Report, 8/30/2012
GOLD DIPS ON FED EXPECTATIONS; CONSUMERS SPENDING MORE
Precious Metals prices were down across the board at midday, moved partially by growing sentiment that the Federal Reserve may not announce the expected monetary measures the markets are looking for. Another round of monetary easing is seen as being a strong positive for Gold. “The stock market is at four year highs, recent data from the United States has been better than expected, so why would they do anything, particularly before an election?” asked Citigroup analyst David Wilson. All eyes will be on Fed Chairman Ben Bernanke and his speech at the Jackson Hole, Wyo., meeting Friday. Also moving the Precious Metals markets is a disappointing report out of Europe showing a decrease in economic sentiment.
Personal consumer spending increased in July to a five month high, according to data from the Commerce Department. Falling gasoline prices coupled with moderate increases in income to provide consumers a bit more to spend this midsummer. Despite July’s increase, consumers have been cautious on spending for most of the year, with a decrease in June and a flat report in May. “In the first quarter of the year, Americans saved less in order to spend more,” said Chris Christopher, senior economist at IHS Global Insight. “In the second quarter, job prospects were not very promising, so Americans put more money aside and spent less.”
At 1 p.m. (EDT), the APMEX Precious Metals spot prices were:
- Gold, $1,656.30, Down $5.20.
- Silver, $30.42, Down $0.51.
- Platinum, $1,509.60, Down $11.70.
- Palladium, $617.00, Down $19.40.
APMEX’s Account Managers now have extended hours Mondays through Thursdays and are here to serve you until 8 p.m. (EDT)! Or call us Fridays until 6 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.