Closing Gold & Silver Market Report – 8/23/2011
Stocks Up Over 300 Points – Precious Metals Retreat of Recent Highs
Continued poor economic data has spurred expectations that the Fed will have to take action to get our economy moving again. All eyes are on Friday’s Fed meeting in Jackson Hole. Clearly, traders are anticipating another form of QE2 to be announced. The Dow Jones Industrial Average rose by 322 points today. There are many fund managers who feel Chairman Bernanke must be feeling pressure from the stock market to respond.
Of course, there are those who warn not to expect much of anything from Friday’s announcement. Steve Liesman of CNBC gives three reasons why Bernanke could very well disappoint those expecting QE3. First, the Fed just took substantial action when they announced they would keep interest rates low through 2013. Second, just because QE2 was announced at the same time last year does not mean QE3 will be announced this year. Third, the recent policy change that announced extended low interest was met by much dissent within the group of Federal Reserve Board Members. New initiatives could have even a tougher time.
The stock market did slip momentarily today as an earthquake shook the Eastern Seaboard. It measured 5.9 on the Richter scale and was centered near Richmond, Va. Tremors from the quake were felt as far away as Boston, NYC and Washington, D.C. Gold prices can be affected by natural disasters severe enough to drive stocks prices down and turn investors towards safe haven investments. The East Coast may also be bracing for a category four hurricane later in the week.
At 4PM (CT) the APMEX precious metal prices were:
- Gold price - $1,839.80 - down $23.50
- Silver price - $42.11 – down 30 cents
- Platinum price - $1,870.00 – down $11.10
- Palladium price - $764.00 – down $3.00