Gold & Silver Close out the Week Strong
In early morning trading both gold and silver prices gave back gains earned earlier in the week, and then the new jobs report came out. The report of only 96,000 new jobs greatly missed expectations and gold soared $25 in a matter of moments. This upward pressure continued throughout the day with gold closing up over $30 and silver over $1.
Bank of America predicted that gold prices could reach $2000 by the end of the year. This prediction is based on the high probability that the Federal Reserve will announce a new round of QE3. The high probability of QE3 seems to be the prevailing market sentiment. The unanswered questions would be when will it happen, for how much and it what form.
Gold and silver are back in the news at a level we have not seen since 2011. If one reason to purchase gold is its value as “uncertainty insurance”, then there is enough uncertainty around the globe to continue to support or drive prices higher. September is historically a strong supporter of gold prices. September is off to a good start…let’s see what next week brings.
Have a great weekend!
At 5PM EDT the APMEX precious metals prices were:
- Gold price - $1,736.80 – up $32.20
- Silver price - $33.72 – up $1.05
- Platinum price - $1,592.50 – up $5.10
- Palladium price - $654.00 - up $6.30