Mid-Day Gold & Silver Market Report, 8/2/2012

Brandi Brundidge

8/2/2012 12:02:00 PM

GOLD PRICE FALLS ON LACK OF EURO PLAN  

Disappointment over a lack of specifics intended to contain the eurozone debt crisis has continued to push Gold lower in midday trading.  While the chief of the European Central Bank, Mario Draghi, had given investors hope last week with comments of support for the euro, the hope was that there would be immediate action outlined in today’s policy statement. “Draghi came and failed to deliver,” said Ole Hansen, senior vice president at Saxo Bank. “It shows how fragile the situation currently is that people look more towards the central bank for support than their governments.”

The United States Federal Reserve appears to have mirrored the European Central Bank in signaling its readiness to act but not outlining any specifics. Many economists see the likelihood of quantitative easing increasing, especially in light of an expected poor employment report due Friday. “Such action is far from a done deal, but we are skeptical that the labor market will convincingly turn around, and so continue to see more asset purchases coming next month,” JP Morgan chief economist Michael Feroli said in a note to clients. The next Fed policy meeting is scheduled for Sept. 12 and 13.

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

• Gold, $1,586.20, Down $18.70.
• Silver, $27.09, Down $0.56.
• Platinum, $1,384.00, Down $17.30.
• Palladium, $569.60, Down $14.00.

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