Closing Gold & Silver Market Report – 8/30/2011
Gold traded slightly higher this afternoon after surging in morning trading, closing up more than 2%. Stocks fell back from their peak this afternoon while gold continued to climb. Silver also made solid gains and also closed higher by almost 2%.
The minutes from the meeting of the Federal Open Markets Committee were released this afternoon. The minutes show that many policy makers at the Federal Reserve are showing support for a more aggressive stimulus move by the Fed than what was outlined by Ben Bernanke at the Jackson Hole conference. The members of the Fed in favor of more stimulus point to consistent fears of a double-dip recession in Europe and a stubbornly high unemployment rate here at home. Proposed steps are a swap of short-term U.S. bonds to long-term bonds, probably pushing interest rates on long-term consumer debt (like mortgages) lower. The Fed could also lower key interest rates past their already-low rates.
Bill Gross, founder and CEO of Pimco, the company that oversees the world’s largest mutual funds, says that he sees a danger of a recession in what he calls the “developed econom[ies]” of the U.S. and Europe. His strategic view sees more stability and safer bets in Australia, Mexico, the U.K., and Canada.
At 04:15 pm (CT) the APMEX precious metals spot prices were:
- Gold - $1,839.60 – up $46.00.
- Silver - $41.46 – up $0.79.
- Platinum - $1,857.60 – up $31.60.
- Palladium - $774.10 – up $18.40.