Morning Gold & Silver Market Report, 6/21/2012
METALS LOSE GROUND AS JOBLESS CLAIMS GROW
Precious Metals were trading lower this morning, along with most other markets around the world. American stock futures cut early losses after the release of the weekly jobless claims report, even though that report showed a net gain of 1,000 claims in the past two weeks. The four week moving average of new claims increased to the highest level in seven months. Movement in Precious Metals still seems to be influenced by the Federal Reserve’s decision to hold steady with Operation Twist, and the disappointment that came from that decision.
The jobs numbers are key at the moment because Federal Reserve Chairman Ben Bernanke signaled yesterday that if the numbers continue to disappoint, further quantitative easing would be the next step. Dean Maki of Barclays PLC said, “If job growth doesn’t pick up from the recent soft readings in the next few months, then the Fed would likely do more and do a full scale asset purchase program.”
Eurozone focus could shift soon from the third largest economy in the region to the fourth largest. JPMorgan strategist Emmanuel Cau said, “As long as there is no proper plan to fix the problem, the markets are always going to worry about the next country.” Many experts believe that “the next country” will be Italy, which has been seen as fundamentally stronger than Spain. However, the fallout from bailing out Spanish banks could affect other countries, such as Italy, in a negative fashion.
At 9 a.m. (EDT), the APMEX Precious Metals spot prices were:
- Gold, $1,589.40, Down $26.90.
- Silver, $27.73, Down $0.76.
- Platinum, $1,458.00, Down $10.80.
- Palladium, $617.00, Down $3.50.
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