Closing Gold & Silver Market Report – 8/24/2011

GOLD FALLS AS TRADERS CASH OUT, TAKE RISKIER BETS

Gold fell substantially today as traders moved into riskier markets, like stocks, in anticipation of the announcement of a third round of quantitative easing.

Glenn Hubbard, dean and Russell L. Carson professor of finance and economics at Columbia Business School, and former chairman of the Council of Economic Advisors doesn’t believe QE3 will actually happen.  “The affect of a QE3 would be relatively modest, and it might risk raising inflationary expectations, so I doubt it."  Inflationary pressures could push gold upwards, and if QE3 does happen, gold could benefit as traders feel less comfortable holding cash positions that are being continually diluted by an aggressive move by the Fed to print more money.

However, it looks like many investors are expecting some kind of QE3 announcement on Friday, as the market is already seeing prices set up in anticipation.  If Bernanke makes no mention of a new stimulus program in his announcement then markets could be in for a surprise, which could increase volatility and possibly push gold higher.

At 4:15AM (CT) the APMEX precious metal prices were:

  • Gold price - $1,756.00 - down $107.30
  • Silver price - $39.81 – down $2.59.
  • Platinum price - $1,807.50 – down $73.60.
  • Palladium price - $747.50 – down $18.80

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Disclaimer:

APMEX’s ‘News and Commentaries’ provide our readers with a review of spot price activity and some of the factors that may be affecting the market for precious metals, three times during the trading day. While the information is obtained from sources we believe to be reliable, we do not guarantee its accuracy or its completeness and we encourage you to conduct your own investigation prior to making any decision based on the information. The "News and Commentaries" are not intended as a comprehensive discussion and there may be other factors that may be affecting the financial marketplace. These "News and Commentaries" are provided for informational purposes only and do not constitute a recommendation by APMEX to hold, to purchase or to sell any precious metal product. All orders, all purchases and all sales, if any, are subject to the terms of the User Agreement and other applicable policies.

US Dollar Prices are in USD

Precious Metal Prices
4/25/2014 4:48:29 AM EST

Metal Bid Ask Change
Gold $1,293.60 $1,295.60 $3.00
Silver $19.53 $19.63 ($0.12)
Platinum $1,403.20 $1,413.20 $3.60
Palladium $800.30 $805.30 $2.00
4/25/2014 4:48:29 AM EST

Click here for Historical Charts*All Charts are in USD


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