Closing Gold & Silver Market Report, 8/7/2012

Brandi Brundidge

8/7/2012 4:06:00 PM

GOLD PRICE STEADY; EUROPE UNDER PRESSURE    

As the markets closed Tuesday, there had been little movement in the Gold price. The reasoning behind such light trading is based on the lack of action from major central banks. In the United States, the question remains whether the slow economic numbers warrant another round of monetary easing from the Federal Reserve. In Europe, the main issue revolves around all of the countries working together toward a resolution to their financial issues. “We still haven’t received the positive news that everybody believed we would see at some point down the road. That’s why we are in this no man’s land,” said David Meger, director of metals trading at futures brokerage Vision Financial Markets.

It is well known that the European financial crisis has taken its toll on the region. One of the few bright spots has been Germany and its economic success. However, reports from the European giant show the crisis has made its way into the German economy, as well.  “Germany can’t escape the crisis, and that has been shown by a consistent deterioration in recent data,” said Nick Kounis, chief European economist at ABN Amro Bank NV in Amsterdam. “At the same time, the country will not fall into a massive recession. It’ll be a long, drawn out period of flattish growth.” 

In the U.S.A., there has been a recent surge in the stock market of late. In most cases this would be seen as a good sign for the economy. Not all economists are impressed. Dan Geller, chief research officer of the Money Market Index, has his view of the sudden spike in the Dow Jones Industrial Average. “The rally on Friday after the release of the employment figures and the consumer confidence index really has no economic merit,” Geller said. “It’s totally irrational.”

At 5 p.m. (EDT), the APMEX Precious Metals spot prices were:

• Gold, $1,612.30, Down $1.80.
• Silver, $28.18, Up $0.21.
• Platinum, $1,411.00, Up $8.10.
• Palladium, $587.40, Up $6.40.

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