Mid-Day Gold & Silver Market Report, 6/20/2012

Brandi Brundidge

6/20/2012 12:07:00 PM

FEDERAL RESERVE KEEPS OPERATION TWIST; QE3 OPTIONS REMAIN OPEN  

The long-awaited report by the United States Federal Reserve to the Joint Economic Committee has been released. The news is to stay the course. Operation Twist is a program that allows for the selling of short-term government debt and replacing it with long term Treasuries. “Growth in employment has slowed in recent months, and the unemployment rate remains elevated,” the Federal Open Market Committee report stated. “Household spending appears to be rising at a somewhat slower pace than earlier in the year.” Fed Chairman Ben Bernanke added, “We’re prepared to take further action as appropriate to promote a stronger economic recovery and sustain improvement in labor market conditions in a context of price stability.” That leaves the door open to another round of monetary easing.

After a successful election in Greece, a new government coalition has been assembled. Now the focus is whether the two main parties can agree on a path to recovery. The two main sides include the conservative New Democracy party and socialist PASOK party. The parties are familiar with one another, having swapped power back and forth in Greece since 1974. “It will be a very weak coalition,” said Nikos Konstandaras, managing editor of leading conservative daily Kathimerini.

As the Gold market has remained relatively steady as of late, the long term future of the Precious Metal is what everyone wants to know. Marcus Grubb, a managing director for the World Gold Council, said, “The fundamentals which underpin Gold demand remain firmly in place. From a rapidly expanding middle class in China purchasing more Gold, to central bank buying and the lasting cultural affinity Indian consumers have with Gold, demand remains supported by a diverse set of drivers.”

At 1 p.m. (EDT), the APMEX Precious Metals spot prices were:

• Gold, $1,604.90, Down $18.70.
• Silver, $28.18, Down $0.29.
• Platinum, $1,464.90, Down $17.60.
• Palladium, $619.40, Down $11.10.

APMEX’s Account Managers now have extended hours Mondays through Thursdays and are here to serve you until 8 p.m. (EDT)! Or call us Fridays until 6 p.m. (EDT)! If you have any questions about investing in precious metals or simply would prefer to place your order by telephone, we are here to help.