PIMCO CEO PREDICTS INFLATION NEAR THREE PERCENT
Precious Metals prices began to decline after the United States unemployment rate dropped a surprising 0.3 percent. The market is reacting radically with concern that the good news for the American economy could cut QE3 short. “People are throwing in the towel,” Adam Klopfenstein, a senior market strategist at Archer Financial Services Inc. in Chicago, said in a telephone interview. “Investors are now speculating on how long the third round” of quantitative easing will continue in the U.S., he said.
Pimco’s CEO Mohamed El-Erian spoke with CNBC today regarding the positive jobs report, saying, “Overall, it’s a good report in the sense that we created over 100,000 jobs and unemployment has come down.” Although El-Erian thinks the news is optimistic for the American economy, he believes we need additional growth to avoid a high inflation rate in the near future. “In three to five years, inflation is more likely to be near 3 percent than the Fed's 2 percent target,” El-Erian said.
At 5 p.m. (EDT), the APMEX Precious Metals prices were:
- Gold, $1,782.50, Down $13.50.
- Silver, $34.55, Down $0.55.
- Platinum, $1,707.70, Down $14.40.
- Palladium, $661.60, Down $14.10.
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