Closing Gold & Silver Market Report – 1/30/2012
SHRINKING GDP, CONTINUED FED EASING PUSH GOLD HIGHER
In response to news that the economy shrank in the last quarter of 2012, the price for Gold gained to end higher. With the Fed intending to continue its aggressive easing policies, both Gold and Silver saw increases during the day’s trading. GFT Markets technical analyst Fawad Razaqzada believes “that investors still see Gold and Silver, above all, as safe-haven assets.” The price for Platinum ended up as well, with only Palladium seeing a dip.
Following a Commerce Department report this morning that gross domestic product in this country contracted in Q4 of last year, the Fed announced that it would maintain its current stimulus plan of $85 billion in monthly bond buying, while also keeping interest rates near zero. Describing U.S. economic growth in recent months as “paused,” the central bank indicated it would continue these efforts until unemployment numbers fall substantially. According to Julia Coronado, chief North American economist at BNP Paribas, “It's a message that policy is steady as she goes.” Expectations are that Friday’s job report will show the jobless rate stuck in place for the third straight month.
At 4:15 p.m. (EST), the APMEX Precious Metals spot prices were:
- Gold, $1,678.20, Up $15.40.
- Silver, $32.05, Up $0.83.
- Platinum, $1,687.60, Up $8.70.
- Palladium, $749.10, Down $1.60.
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