Mid-Day Gold & Silver Market Report, 06/05/2012
Brandi Brundidge
6/5/2012 12:17:00 PM
SPECULATION ON EASING GROWS; EUROPEAN DEBT POOL MENTIONED
Gold continues to trade in positive territory today as expectations for some type of monetary easing grow. “We could see some form of easing (or) monetary policy to combat the effect of Europe’s debt crisis on the world economy,” said Tim Gardiner at Toronto-Dominion Bank. While easing could push the Gold price higher, the dollar’s rising value may add resistance to any upward movement.
Germany appears to be willing to trade a greater role supporting its indebted EU partners for more centralized control over government spending in member nations. While continuing to stay away from the idea of “eurobonds,” there is growing interest in pooling the bad debt with a payoff timetable of 25 years. “The world wants to know how we expect the political union to complement the currency union,” German Chancellor Angela Merkel said. “We have to find an answer in the foreseeable future.”
American stocks are gaining today on the positive growth in the Supply Management Index of Nonmanufacturing Business, which increased to 53.7 from 53.5. “The optic on it is encouraging,” Mark Luschini, chief investment strategist of Janney Montgomery Scott, said of the report. “But everything is being trumped at the moment by what is happening in Europe.”
At 1 p.m. (EDT), the APMEX Precious Metals spot prices were:
- Gold, $1,619.50, Up $6.10.
- Silver, $28.49, Up $0.40.
- Platinum, $1,443.10, Up $13.80.
- Palladium, $620.10, Up $6.20.
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APMEX Market Reports provide our readers with a review of spot price activity and some of the factors that may be affecting the market for Precious Metals. 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 Market Reports are not intended as a comprehensive discussion and there may be other factors affecting the financial marketplace. These Market Reports are provided for informational purposes only and do not constitute a recommendation by APMEX to hold, purchase or sell any Precious Metal product. All orders, purchases and sales, if any, are subject to the terms of the User Agreement and other applicable policies
