GOLD PUSHES TOWARD $1,700; SILVER ABOVE $32
Comex Gold futures are slightly higher this morning, setting new five month highs. Gold and Silver prices shot upward after Federal Reserve Chairman Ben Bernanke seemed to open the door to QE3 in his speech at Jackson Hole, Wyo., last week. Now, markets are focused on the monthly meeting of the European Central Bank, which is set for Thursday. Many analysts expect the ECB will announce a monetary stimulus plan that will boost both stocks and Precious Metals.
Adding more pressure to the ECB, Moody’s Investors Service changed its eurozone outlook to negative. Moody’s warns that if it lowers the ratings of Germany, France, the United Kingdom and the Netherlands (the European Union’s four biggest budget backers), it might just downgrade the entire eurozone bloc.
The United States and Europe may not be the only economies on the verge of receiving a stimulus. Although the Chinese government has yet to implement any stimulus measures in the face of a slowing Chinese economy, there is additional evidence that the Chinese economy is slowing. On Saturday, the official manufacturing sector survey reported a 49.2 reading in August. This falls below the level of 50 that separates expansion from contraction. In another survey more focused on small to midsize businesses, published by HSBC, the number was 47.6.
At 9 a.m. (EDT), the APMEX Precious Metals spot prices were:
- Gold, $1,691.70, Up $5.60.
- Silver, $32.20, Up $0.76.
- Platinum, $1,558.10, Up $19.80.
- Palladium, $640.80, Up $11.40.
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