Closing Gold & Silver Market Report – 8/25/2011
TO QE3 OR NOT QE3 THAT’S THE INVESTOR’S QUESTION
Since the Mid-Day Gold & Silver Market Report, gold has maintained its position with positive gains for the day. The previous losses of gold were attributed in large part to the CME Group raising the margins on gold futures by 27%, which is its largest hike in 2 ½ years and the second increase this month. "Gold's decline with such a dramatic magnitude in such a short period of time is driven by short-term momentum investors coming out, not long-term investors," said Stanley Crouch, chief investment officer at Aegis Capital, who oversees $2 billion in assets.
There is a growing feeling that the Federal Reserve may let down those stock investors who believed there would be a commitment to step up stimulus. Some investors feel there should be further action taken to help buoy the economy taken by Ben Bernanke. However, a number of investors feel disappointment is on the horizon. According to Rob Dugger, managing partner at Hanover Investment Group LLC and a regular participant at the Jackson Hole conference, “The stock market is going to be disappointed Friday morning…It’s not going to get that kind of life-buoy thrown out over the water so that it can grab hold and swim safely to shore.”
The United States has clearly tried to distance itself from attempts to locate Muammar Gaddafi. According to State Department spokeswoman, Victoria Nuland, “Neither the United States nor NATO is involved in this manhunt.”
At 4:15 pm (CT) the APMEX precious metals spot prices were:
- Gold - $1,775.80 – Up $16.50.
- Silver - $41.27 – Up $2.00.
- Platinum - $1,824.50 – Down $2.80.
- Palladium - $754.00 – Up $8.90.