Mid-Day Gold & Silver Market Report, 7/19/2012
GOLD, SPAIN FIND POSITIVE SUPPORT; HOUSING SALES DROP
The Gold price found some support and began to rise after yesterday’s testimony from Federal Reserve Chairman Ben Bernanke that further stimulus to boost the economy has been pushed to the side for now and possibly until after the 2012 presidential election. “I think this is why Gold, with the comments that Mr. Bernanke made not yesterday but more the comments he made on Tuesday, (is) kind of leaving the door open for quantitative easing,” said Tim Harvey, senior vice president at ETF Securities U.S.
Spain received encouraging news today as that country has been facing a financial emergency. German lawmakers have approved the euro area bailout plan for Spanish banks. Finance Minister Wolfgang Schaeuble reassured German lawmakers that Spain remains fully responsible for the aid, and Parliament will be included on the entire process of the rescue plan. “Schaeuble reassured us today that there will be no possibility to sidestep the liability issue in the process of transferring Spanish bank rescue aid,” said Michael Fuchs, deputy parliamentary leader of German Chancellor Angela Merkel’s Christian Democratic Union party. “We want to make sure there are no tricks,” that there is no “circumventing state liability,” he said. “The German Parliament will be involved all the way.”
The American housing market has struggled to recover since its downfall in 2008. The National Association of Realtors reported today that sales of previously occupied homes fell to the lowest point since October. “It is only one month, and the rest of the housing indicators have all continued to show improvement,” said Jennifer Lee, senior economist at BMO Capital Markets. “Let’s hope this June decline is a blip.” The housing market is receiving support from record low mortgage rates, with the average rate on a 30 year fixed mortgage falling this week to 3.53 percent, which is the lowest long term mortgage rate since that option began in the 1950s. This is a potentially good sign, as housing is one of the Fed’s key indicators.
At 1 p.m. (EDT), the APMEX Precious Metals spot prices were:
- Gold, $1,586.40, Up $14.10.
- Silver, $27.40, Up $0.22.
- Platinum, $1,419.90, Up $15.70.
- Palladium, $585.50, Up $6.90.
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