Mid-Day Gold & Silver Market Report – 10/24/2012
CHINA’S GOLDEN INSIGHT; U.S. GROWTH STILL SLOW
Gold has stayed relatively flat in the market today. The lull may be short lived based on what the U.S. Federal Reserve does in its two day meeting this week. It doesn’t seem to matter to China what the market is doing in the short term because all year they have been on a Gold buying spree. They have purchased 512 tons of Gold in the first eight months of this year alone. Because of China’s large foreign exchange reserve, it has many speculating that they are just getting started. One popular theory is that the Gold market has been rigged by many financial institutions to keep the metal prices down. By keeping the prices of metals down, it would ensure the major world currencies values would not diminish. Former Assistant Secretary of the Treasury Paul Craig Roberts was quoted in October 2010, "I suspect that the Federal Reserve is manipulating the Gold and Silver markets in order to prevent its low interest rate policy from undermining the value of the US dollar. It is easy to offset rising prices of bullion due to physical demand by selling shorts in the paper market." This, of course, is merely a theory.
In the United States, the report of growth in the manufacturing sector is positive news. The negative side of the report shows that orders are down domestically and abroad. There are many economists that believe the slow down is due to the upcoming election. Due to the fact that the two main parties involved in the election have completely different ideas on the economy, many business leaders have adopted a ‘wait and see’ mentality. Markit chief economist Chris Williamson said, "Demand at home remains subdued, possibly reflecting clouds hanging over the economic outlook due to the upcoming elections and worries about fiscal policy."
At 1 pm (EDT), the APMEX Precious Metals spot prices were:
- Gold, $1703.40, Down $6.00.
- Silver, $31.74, Down $0.07.
- Platinum, $1562.10, Down $11.40.
- Palladium, $595.10, Up $0.30.
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