Closing Gold & Silver Market Report – 2/19/2013
GOLD PRICE DOWN ON POSITIVE ECONOMIC OUTLOOK
There have been many positive signs as of late from reports regarding the United States economic forecast. Employment, housing, and manufacturing across the country have shown improvement and the U.S. Federal Reserve is taking notice. Tomorrow the minutes from the Fed’s latest meeting will be released and there is speculation of cutting back the levels of monetary easing done by the central bank. Just as the addition of easing has helped support Gold’s market value, the (speculative) subtraction of easing has lowered the price of Gold. “The U.S. economy has certainly shown signs of strength, and people are now worried that the government may announce the end of the easing,” Frank McGhee, the head dealer at Integrated Brokerage Services LLC in Chicago, said in a telephone interview.
In a recent report by from Goldman Sachs top economist Jan Hatzius, there seems to be more support for the positive economic outlook in the United States other than just reports. “But the more important reason is that Republicans in Congress seem to have given up on the idea of using the debt ceiling to force additional spending cuts,” he said. “So the tail risk that the overall fiscal drag will be much larger than the 1½-2 percentage points we assume for 2013, and that this will push the economy below ‘stall speed’ and into a renewed recession, looks much lower now.” However, the outlook is still calling for growth to be slow and dependant on the leaders of the country to work together to back a solitary fiscal policy.
At 5:00 pm (EDT), the APMEX precious metals spot prices were:
- Gold, $1605.20, Down $5.30.
- Silver, $29.50, Down $0.41.
- Platinum, $1694.10, Up $16.40.
- Palladium, $764.80, Up $10.60.
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