Closing Gold & Silver Market Report, 8/23/2012
GOLD MOVEMENT REFLECTS EAGERNESS; IS WORLD RECESSION LIKELY?
The Gold price has moved more this week than in the past four months. The movement reflects growing eagerness for the Federal Reserve to provide further stimulus measures to boost the economy. The minutes from the Federal Open Market Committee’s meeting, released yesterday, reflect that several committee members support additional fiscal accommodation unless the United States economy suddenly becomes more healthy. Adam Klopfenstein at Archer Financial Services Inc. said, “Gold is exploding today as inflation concerns are back. A combination of rising commodity prices and the chances of more easing coming in the U.S. is stoking inflation worries.”
Marc Faber, publisher of “The Gloom, Boom & Doom Report,” predicts that the world is directed toward a recession with a 100 percent probability. Although Faber may seem to only forecast cynical views, many observers know such an occurrence is likely. Faber said, “Europe is already in recession. Germany is still growing very, very slightly, but is likely to go into recession soon. The U.S. economy has decelerated, and I don’t see much growth in the next six to 12 months.” Faber said boosting the U.S. economy will take “massive easing.” But with the United States deficit currently at $1.3 trillion and growing, he said he doesn’t expect much change in the financial situation.
At 5 p.m. (EDT), the APMEX Precious Metals spot prices were:
- Gold, $1,671.40, Up $32.40.
- Silver, $30.61, Up $0.97.
- Platinum, $1,544.00, Up $16.50.
- Palladium, $656.10, Up $25.90.
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