Closing Gold & Silver Market Report, 9/06/2012
GOLD STILL FIRM ON ECB COMMENTS; LABOR REPORT LOOMING
Gold’s early session gains were pared as several good economic reports increased doubts about seeing any economic stimulus in the short term. Payroll processor ADP reported positive employment numbers, and the United States Labor Department said first time unemployment claims fell to their lowest number since mid July. The Labor Department will release its official report Friday. Depending on Friday’s job report, gold could go above $1,700 an ounce, HSBC’s James Steel said. A positive report could offer some headwinds, “but overall the market still looks pretty firm,” he said.
Gold was not the only beneficiary after comments by European Central Bank President Mario Draghi. The S&P 500 index reached a four year high, and the price of Treasuries fell on growing optimism. “The market was looking for signs that the ECB and some part of the European Union would basically stimulate in Europe and guarantee the sovereign debt,” David Pearl at Epoch Investment Partners said. “Draghi pretty much gave what the market was looking for. The U.S. data is at least moving positively, and we’re in a recovery.”
At 5 p.m. (EDT), the APMEX Precious Metals spot prices were:
- Gold, $1,701.70, Up $8.70.
- Silver, $32.69, Up $0.36.
- Platinum, $1,584.10, Up $7.50.
- Palladium, $647.80, Up $0.90.
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