Mid-Day Gold & Silver Market Report – 8/29/2011
STOCKS UP AGAIN ON STRONG ECONOMIC DATA, GOLD HOLDS RELATIVELY STEADY
Gold has turned lower but only lost modest ground in morning trading. Losses were pared mostly due to some demand as a safe haven, although many investors are feeling more confident in riskier markets, pushing stocks up strongly.
Consumer spending, regarded by many as the main driver of U.S. economic activity, increased 0.8% in July, after slipping slightly in June. This data is good news for many investors, as it helped push stock prices substantially higher. It also shows that the U.S. may not be quite as close to recession as was feared a few weeks ago. Joel Naroff, chief economist at Naroff Economic Advisors in Holland, Pennsylvania said, "It's a little far-fetched to truly believe that we are headed into another recession. This data doesn't support that view at all.”
Damage left by Hurricane Irene appears to have largely been more mild than originally anticipated, and business has resumed in most of the New York City area. However, flooding remains a problem in surrounding areas which received massive rainfall. It seems the worst-case scenario was avoided.
At 2PM (CT) the APMEX precious metal prices were:
- Gold price - $1,1787.60 – down $11.90
- Silver price - $40.80 – down $0.28
- Platinum price - $1,827600 – down $0.30
- Palladium price - $757.40 – down $0.70