Morning Gold & Silver Market Report – 10/24/2012
GOLD FACES THE EUROZONE’S NEGATIVE NEWS
The price of Gold has seemed to lose its momentum after the credit ratings of five Spanish regions were downgraded yesterday, which pushed the euro and Gold down. The U.S. dollar is stronger today after Germany's business sentiment dropped for the sixth consecutive month, reflecting a weaker economy. Jeremy East at Standard Chartered believes the yellow metal is being tested at this time, but the expectation for future higher prices remains the same. East said, “I think we're going to have another test on the downside. The market is still quite heavily long, especially on the Commitment of Traders."
The European debt crisis has unfortunately worsened over the past three years, which has led to it spreading like a wildfire throughout the eurozone. The Purchasing Managers’ Index (PMI) for the eurozone was released today. The report is viewed as a reliable indicator of how about 5,000 businesses polled in the eurozone have grown. The PMI for October has dropped to 45.8 from September’s reported 46.1. This is the lowest reading since June 2009. The reading shows how eurozone businesses have been forced to cut jobs to reduce costs with the unforeseen future approaching. "It's very disappointing, it's a depressing scenario as things are getting worse," said Chris Williamson, chief economist at data collator Markit.
At 9:16 a.m. (EDT), the APMEX Precious Metals spot prices were:
- Gold, $1,711.70, Up $2.30.
- Silver, $31.92, Up $0.11.
- Platinum, $1,579.80, Up $6.70.
- Palladium, $600.40, Up $5.50.
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