GOLD RISES AS CONSUMER CONFIDENCE BRINGS DOWN DOLLAR
Gold’s price received a boost today after the European Central Bank (ECB) indicated it would not cut interest rates in the near future. ECB President Mario Draghi has concluded the eurozone will continue to struggle with growth for the majority of 2013, and he suggested a slow recovery in the latter part of 2013. “Gold was oversold after the Fed minutes. I don't see the Fed will be doing anything to withdraw stimulus soon,” Bill O'Neill, partner of commodities investment firm LOGIC Advisors, said. “Clearly, Mario Draghi is leaving room for accommodation, and the overall global pattern of central bank easing continues to be there.”
The Bloomberg Consumer Comfort Index slightly fell to minus 34.4, the largest one-week drop since August. The weaker consumer confidence comes from higher U.S. payroll taxes that begin this year along with an increase in U.S. jobless claims. “Consumers are coming to the realization that their take-home pay is going to get smaller,” Richard Yamarone, a senior economist at Bloomberg LP in New York, said. “That will translate into weaker spending. I expect the economy will spin its wheels for many months until the jobs picture, and associated incomes, improves.” The tax that funds Social Security benefits increased from 4.2 percent back to the previous level of 6.2 percent after last week’s approval from Congress.
At 5 p.m. (EST), the APMEX Precious Metals spot prices were:
- Gold, $1,677.30, Up $19.80.
- Silver, $30.90, Up $0.62.
- Platinum, $1,632.30, Up $32.30.
- Palladium, $702.80, Up $13.60.
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