Mid-Day Gold & Silver Market, 7/18/2012
Brandi Brundidge
7/18/2012 12:13:00 PM
GOLD REACTS TO LACK OF DIRECTION; AMERICA’S GROWTH SLOW
The Gold price has continued to fall today thanks to the lack of action by the United States Federal Reserve. As the second day of testimony from Fed Chairman Ben Bernanke continues, there are no signs of any additional monetary easing in the near future. Also, the economic situation in Europe has driven the value of the American dollar up, which has an effect on Gold prices. Analysts at Credit Agricole said in a note today, “Expect that the U.S. dollar will continue to find support, particularly once market attention shifts back to political developments in Europe.”
Issues with the European economy took a negative turn today when it was reported that Germany is not confident the recovery project can succeed. The news sent the euro’s value down more than half of a percent. “Overall the picture is still very negative, and the news flow of policy and data is working against the euro this morning,” said Ian Stannard, head of European FX strategy at Morgan Stanley.
In an interview Tuesday, United States Treasury Secretary Timothy Geithner agreed that the economy is slow, but he does not buy into the idea of another recession upcoming. “What the economy needs right now is a very substantial and well designed program for support of economic growth,” Geithner said. As tax increases and spending cuts are set to start at the beginning of 2013, Congress is feeling the pressure to get an economic plan in place quickly.
At 1 p.m. (EDT), the APMEX Precious Metals spot prices were:
- Gold, $1,576.70, Down $14.30.
- Silver, $27.21, Down $0.20.
- Platinum, $1,406.70, Down $14.00.
- Palladium, $577.80, Down $7.80.
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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
