Closing Gold & Silver Market Report, 8/31/2012
Peter LaTona
8/31/2012 3:59:00 PM
FED CHAIRMAN’S ‘GRAVE CONCERN’ STATEMENT SENDS GOLD, SILVER CLIMBING
In his speech from Jackson Hole, Wyo., on Friday morning, Federal Reserve Chairman Ben Bernanke said, “The stagnation of the labor market is a particularly grave concern because persistently high levels of unemployment will wreak structural damage on our economy that could last for many years.” He also said that although you must weigh the costs of further stimulus, these costs seem manageable. All in all, the markets reacted as if the Fed was paving the way for more monetary easing. Now that the Jackson Hole speech has been delivered, Europe will again take front and center. There are some key events taking place in September.
Markets are still sorting out European Central Bank President Mario Draghi’s sudden cancellation of a speech he was supposed to make at Jackson Hole. The speech was advertised well in advance and then canceled on the eve of the event. Is it that he had nothing to say? Or was it that what he had to say might have upstaged Bernanke? It has been in the news that German Central Bank Chief Jens Weidmann has threatened to quit on several occasions due to his opposition to Draghi’s new bond purchasing plan. Weidmann has expressed great displeasure at plans to lower Italian and Spanish borrowing costs through bond purchases. Draghi made a vow July 26 to do whatever it takes to save the euro, and the world still awaits what that actually means.
The world will need to wait until September for answers, as we close out August and enter the Labor Day weekend. Enjoy!
At 5 p.m. (EDT), the APMEX Precious Metals prices were:
- Gold - $1,692.20, Up $36.60.
- Silver - $31.79, Up $1.34.
- Platinum - $1,541.40, Up $36.70.
- Palladium - $629.50, Up $13.10.
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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
