Morning Gold & Silver Market Report, 8/28/2012
ANTICIPATION GROWS, AFFECTS MARKETS AHEAD OF FED MEETING
The week’s dominant financial news will be the speculation ahead of the Federal Reserve’s Jackson Hole, Wyo., symposium. Anticipation leading up to the event is leaving stocks flat. David Morrison, senior market strategist at GFT Markets in London, said “There are hopes that the Fed chairman will signal that another round of quantitative easing (QE) is imminent, although it seems more likely that he will keep investors guessing, while assuring them that the Federal Reserve stands ready to intervene further, if required.”
The eurozone is in a battle of its own, regardless of what the Fed decides. Spain is being sucked into the center of the eurozone debt crisis. Spanish consumers have pulled as much as 5 percent of their private sector deposits. The other side of this coin is that Greek banks are seeing a boost in their deposits since June elections. Private sector deposits are up about 2 percent.
Gold is riding a three month increase in price, up 3.1 percent. This is the highest percentage increase since January. The rising price is fueled, in part, by expectations for what will come from the Jackson Hole meeting. Gold’s meteoric rise in price, doubling since 2008, has been fueled by the Fed’s QE tactics. For people who are risk adverse, Gold holds a strong appeal; as currencies inflate, Gold will always be a store of wealth, as its value is historically independent of any one currency.
At 9 a.m. (EDT), the APMEX Precious Metals prices were:
- Gold, $1,665.40, Down $8.70.
- Silver, $30.90, Down $0.24.
- Platinum, $1,524.50, Down $29.70.
- Palladium, $640.40, Down $15.80.
APMEX’s Account Managers now have extended hours Mondays through Thursdays and are here to serve you until 8 p.m. (EDT)! Or call us Fridays until 6 p.m. (EDT)! If you have any questions about investing in Precious Metals or simply would prefer to place your order by telephone, we are here to help.