Mid-Day Gold & Silver Market Report, 9/6/2012
POSITIVE DATA MOVE STOCKS, GOLD HIGHER
American stocks were up today, following positive economic reports and news about the European Central Bank’s (ECB) unlimited bond buying program. Information showing growth in the United States services sector, as well as in employment and exports, coincided with the ECB’s announcement, and this has driven the S&P 500 to its highest point since 2008. ECB President Mario Draghi said the new bond buying plan “will enable us to address severe distortions in government bond markets, which originate from, in particular, unfounded fears on the part of investors of the reversibility of the euro.”
The Gold price benefited as a result of the latest news from the eurozone, rising above $1,700 per ounce to reach its highest level in six months. “Gold is holding because the market has been given what it was hoping for, but in order for Gold to move decisively higher from here, we need to see what numbers the U.S. will bring to the table,” said Ole Hansen, senior manager at Saxo Bank. Hansen’s remark was in reference to anticipation of the United States Federal Reserve’s announcement on whether or not it will seek its own bond buying plan to help stimulate a lagging American economy. A third round of quantitative easing (QE) could give an additional boost to Gold prices, as QE has been one of the main factors in doubling the price of Gold since 2008.
At 1 p.m. (EDT), the APMEX Precious Metals spot prices were:
- Gold, $1,704.80, Up $11.80.
- Silver, $32.69, Up $0.36.
- Platinum, $1,587.00, Up $10.40.
- Palladium, $647.50, Down $0.60.
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