Closing Gold & Silver Market Report, 7/11/2012
MEETING MINUTES SHOW NO SIGN OF QE3 SOON
American markets, with hopes for additional quantitative easing, ended mostly lower today after the minutes of the most recent Federal Open Market Committee meeting were released. The minutes, which give insight into policy makers’ decisions, showed a lack of support for further easing. “On balance, the minutes do not on the surface suggest a sizable body of support for further immediate action, although it should be borne in mind that the comments were made prior to recent data disappointments,” said Peter Buchanan, economist at CIBC World Markets. The American dollar climbed in value, pushing the euro to its lowest value in two years. The Gold price had little change today, as the downward pressure on Gold was mostly offset by demand from investors seeking a safe haven.
With the entire global economy in the midst of synchronized slowdown, many analysts see further easing of monetary policy as a catch 22. Fiscal stimulus measures such as quantitative easing and record low interest rates are “now seen as a sign of weakness rather than strength,” said Andrew Kenningham, senior global economist at Capital Economics.
Goldcorp Inc. of Canada, one the world’s largest Gold mining companies, cut its output forecast for 2012 by nearly 10 percent today, pushing its stock valuation down by the same percentage. With physical demand still strong, the reduction in supply could affect the Gold market.
At 5 p.m. (EDT), the APMEX Precious Metals spot prices were:
- Gold, $1,577.50, Up $3.80.
- Silver, $27.16, Up $0.21.
- Platinum, $1,428.90, Down $0.80.
- Palladium, $583.90, Up $6.30.
APMEX’s Account Managers now have extended hours Mondays through Thursdays and are here to serve you until 8 p.m. (EDT)! Or call us Fridays until 6 p.m. (EDT)! If you have any questions about investing in Precious Metals or simply would prefer to place your order by telephone, we are here to help.