Closing Gold & Silver Market Report – 7/31/2013
FED ANNOUNCEMENT SUPPORTS METALS; EUROZONE MAY EXIT RECESSION SOON
Precious Metal prices rebounded from morning losses after the U.S. Federal Reserve announced interest rates would remain unchanged as long as the economy continues to improve at its current modest pace. “There is nothing in the latest [Federal Open Market Committee] statement released today to suggest that Fed officials have changed their minds about starting to taper the monthly asset purchases in September,” Capital Economics chief U.S. economist Paul Ashworth said. The key difference from the last meeting is that Fed chairman Ben Bernanke’s economic growth outlook went from moderate to modest. This adjustment may indicate the Fed is concerned about unexpected economic changes in the near future.
A drop in the eurozone’s unemployment rate was positive news today from the area that has been in financial and economic crisis for some time now. The drop was relatively small however, keeping unemployment at 12.1 percent for the fourth consecutive month. “It's no secret that domestic demand remains very weak because spending is massively impaired by unemployment and austerity,” Deutsche Bank economist Gilles Moec said. A Commerzbank research note from last week stated that the eurozone recession is likely over, providing the market reassurance for the future of European stocks.
At 5 p.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,326.50, Down $0.30.
- Silver, $19.91, Up $0.15.
- Platinum, $1,439.80, Up $1.30.
- Palladium, $730.60, Up $0.50.