GOLD DOWN ON PROFIT TAKING; HOUSING PERMITS BOOST ECONOMIC INDEX
Gold closed down today as continued euro uncertainty and a weak U.S. equities market had many investors looking to consolidate gains. A battle of wills between Berlin and Paris over greater European Union control of national budgets weakened the euro, and Gold, relative to the dollar. Adding to the pressure was new data showing China’s economy slowed for yet another quarter. “Without any other major drivers, the Precious Metals will continue to show weakness and test the downside” because the latest buyers might lack patience to wait for another bull run, said Carlos Perez-Santalla, a broker at PVM Futures. Despite its recent pull back, Gold is still up $150 per ounce from mid-August.
A jump in home construction permits has underpinned the largest increase in the index of U.S. leading economic indicators in seven months. While projected to climb only 0.2 percent, the Conference Board’s gauge of the economic outlook for the next three to six months increased 0.6 percent. “The residential housing market is in the very early stages of a durable recovery,” Joe Lavorgna, at Deutsche Bank Securities Inc. in New York, said. “Housing is a leading indicator of underlying domestic demand; thus, continued improvement in the former bodes well for some acceleration over time in the latter.”
At 5 p.m. (EDT) – the APMEX Precious Metals spot prices were:
- Gold, $1742.10, Down $10.40.
- Silver, $32.84, Down $0.42.
- Platinum, $1,640.40, Down $27.10.
- Palladium, $643.90, Down $10.60.
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