Morning Gold & Silver Market Report – 8/26/2011
FOR BETTER OR WORSE, ALL EYES ON BERNANKE
Gold prices pushed upwards in overnight trading, as the expectation of Federal Reserve Chairman Ben Bernanke’s highly anticipated speech is now that he will not signal that the Fed is ready for a third round of quantitative easing. Silver has mainly tracked gold overnight, while platinum and palladium continue their bumpy road which closely follows the stock market.
Douglas A. McIntyre of 24/7 Wall St. wrote that “Americans have turned their backs on equities in favor of gold. That is probably a good decision.” He explains that recent polls show that investors believe gold to be the best long-term investment, leaving real estate and stocks in the dust. The investing climate has changed, and, as McIntyre explains, “The more people who desert equities for gold, the more likely it is to push gold higher.”
While the hope of many investors is a QE3 announcement, they may still hear something that may soothe their fears. Bernanke is expected to announce “relatively modest” steps to support the struggling U.S. economy at the Jackson Hole meeting today at 9:00 am (Central Time). A string of disappointing economic data reports has many investors worried about another recession in a time when the economy is supposed to be recovering. This was compounded when second-quarter growth was revised down to 1.0% from 1.3% this morning. Stock futures are mixed ahead of the announcement as Wall Street seems to be taking a “wait and-see” approach.
At 8:00 am (CT) the APMEX precious metals spot prices were:
- Gold - $1,776.20 – Up $11.00.
- Silver - $40.80 – Down $0.06.
- Platinum - $1,819.70 – Down $3.70.
- Palladium - $750.40 – Down $2.90.