BARGAIN HUNTERS, ECB BOOST GOLD AFTER TWO DAYS OF LOSSES
Following two straight sessions of losses, Gold is up slightly. Bargain hunters who have purchased on the recent dips along with meager economic forecasts by the European Central Bank (ECB) are the cause of the modest rebound. After losing 1.6 percent over the past two days, many Gold investors await U.S. non-farm payroll data to be released Friday as well as reports from next week’s Federal Reserve meeting. “We have the ECB decision today, with some (talk) of Spain applying now for financial help, and furthermore we have the Fed decision,” LGT Capital analyst Bayram Dincer said. “Also, some people are positioning for year-end profit taking. All of this is adding to negative sentiment in the Gold market.”
After a strong advance on Wednesday, stocks are on the rise for a second straight session today as investors remain poised for news of a budget deal in Washington. RidgeWorth Capital Management senior strategist Alan Gayle said, “[J]obless claims were better than expected. The data suggest the U.S. economy continues to heal and that will be the case as long as we don’t fall off the fiscal cliff.” However, many are still not confident in traditional markets as we approach the end of the year. “[The] fiscal cliff is on the forefront, stalling any moves at the moment. If there is a disparity one way or the other from tomorrow’s jobs report, you will probably see a move in the market.” In times of economic uncertainty, Gold has historically proved to be a safe investment haven.
At 1 p.m. (EST), the APMEX Precious Metals spot prices were:
- Gold, $1,699.80, Up $6.00.
- Silver, $32.70, Up $0.11.
- Platinum, $1,602.00, Up $16.80.
- Palladium, $685.50, Up $9.20.
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