Closing Gold & Silver Market Report, 8/24/2012
GOLD STEADY AFTER ACTIVE WEEK; CHINA’S ECONOMY SEEMS FRAGILE
The Gold price remained flat Friday compared to movement seen earlier in the week. The surge in Gold’s price was supported by investors who believe the Fed is reaching its breaking point and is about to release the next round of quantitative easing in the United States. “Gold has this week broken out of its well defined, multi month downward trend line. That resistance, which kept Gold in a range in the last several months, should become a new level of support, suggesting Gold is not going down but going higher,” said Adam Sarhan, chief executive of Sarhan Capital.
China’s economy was expected to make a quick recovery, but a key private sector indicator released Thursday indicated otherwise. The Chinese factory activity hit a nine month low in August, prompting investors to wonder what the future holds for China. After the report was released, Frederic Neumann at HSBC said, “(While) we still believe the Chinese economy will pick up steam in the fourth quarter, this idea that the bottom has already passed in May, June, is optimistic. People jumped too quickly to the conclusion that China would fire everything at the economy to bring growth back up. What transpired is the policy makers have been cautious about over stimulating growth.”
At 5 p.m. (EDT), the APMEX Precious Metals spot prices were:
- Gold, $1,671.20, Down $0.10.
- Silver, $30.84, Up $0.30.
- Platinum, $1,551.50, Down $4.40.
- Palladium, $654.50, Down $3.60.
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