Morning Gold & Silver Market Report, 8/6/2012
REPORT PREDICTS GOLD TO RALLY ABOVE $1,900 IN 2012
A report from HSBC Bank states, “Economic uncertainty, geopolitical tensions and the uncertainty of the U.S. November elections are theoretically Gold bullish, and Gold should perform better later in the year when U.S. growth is poor and the dollar is weak.” The report further stated that “we expect prices to rally to above $1,900 per oz by the end of the year. Patience is the most important commodity.”
Gold was up slightly in early morning trading as the United States dollar index hit a one month low. Friday’s positive jobs report increased the appetite for risk and, therefore, put downward pressure on the American dollar. There is much speculation that further monetary easing will be announced after September’s Federal Open Market Committee. For now, Gold remains in a fairly tight trading pattern while trying to decipher the direction of the global economies.
Spain remains in the spotlight, and the question is how much bailout will that country actually need. At the moment, efforts are being made to stop the bleeding, but it is uncertain whether that can save the patient. The credit ratings make it very difficult for institutional investors to invest in Spain. There are concerns that this could turn into the same pattern as Greece, where smaller bailouts eventually turned into a full fledged bailout.
At 9 a.m. (EDT), the APMEX Precious Metals prices were:
- Gold, $1,1610.00, Up $2.70.
- Silver, $27.80, Down $0.11.
- Platinum, $1,397.00, Down $17.40.
- Palladium, $577.60, Down $1.60.
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