FACTORS INFLUENCING GOLD PRICES
The global economic condition has become a great concern for the financial market recently. The European financial crisis has been prolonged, and containing the predicament from spreading to other countries is a difficult task. Today, U.S. weekly jobless claims climbed to 439,000, which analysts say was a result of Hurricane Sandy. Another obstacle the Gold price is facing is a slowdown in demand from China, the world’s second-largest consumer. “The combination of the Anglo miners going back to work and the World Gold Council report showing Gold demand falling is pressuring Precious Metals,” David Meger, the director of metal trading at Vision Financial Markets in Chicago, said in a telephone interview.
Federal Reserve Chairman Ben Bernanke declared the Fed’s intention to take action to create growth in the U.S. housing market. “We will continue to use the policy tools that we have to help support economic recovery,” he said today in Atlanta, GA. Bernanke is well known for his fondness to monetary stimulus that assists the country during difficult economic times with programs such as quantitative easing. “Continued weakness in housing — reflected in falling prices, low rates of new construction and historic levels of foreclosure — has proved a powerful headwind to recovery,” he continued. “It is encouraging, therefore, that we are seeing signs of improvement in the housing market in most parts of the country.”
At 5 p.m. (EST), the APMEX Precious Metals spot prices were:
- Gold, $1,717.70, Down $14.40.
- Silver, $32.66, Down $0.29.
- Platinum, $1,572.50, Down $19.10.
- Palladium, $632.80, Down $9.80.
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