Closing Gold & Silver Market Report, 8/22/2012
GOLD SURGES AS FED SAYS EASING ‘WARRANTED FAIRLY SOON’
Just a day after hitting a two month high, the Gold price is now sitting at a 16 week high after the release of the latest Federal Open Market Committee minutes. In the minutes, the Fed said, “Many members judged that additional monetary accommodation would likely be warranted fairly soon unless incoming information pointed to a substantial and sustainable strengthening in the pace of the economic recovery.” In short, unless economic reports start showing significant growth and signs that it will stay that way for a long period, a third round of quantitative easing (QE3) is highly likely and may be coming soon.
Michael Gayed of Pension Partners LLC said, “Gold is surging on renewed expectations of inflation rising after easing.” During two rounds of quantitative easing, from December 2008 to June 2011, the Gold price jumped 70 percent. All eyes continue to be on the Fed’s Jackson Hole, Wyo., economic symposium for more signs of QE3. That meeting is to be held late next week.
At 5 p.m. (EDT), the APMEX Precious Metals spot prices were:
- Gold, $1,655.10, Up $13.70.
- Silver, $29.89, Up $0.36.
- Platinum, $1,539.60, Up $30.80.
- Palladium, $633.50, Up $7.80.
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