Morning Gold & Silver Market Report, 9/7/2012

Brandi Brundidge

9/7/2012 8:20:00 AM

PRECIOUS METALS PRICES RISE ON WEAK JOBS REPORT  

Precious Metals prices were reacting to this morning’s United States nonfarm jobs report that showed 96,000 jobs were created in August. The number was disappointing because it fell short of the 125,000 that had been expected. This news was bullish for Gold and boosted the possibility of financial stimulus from the Federal Reserve. The expectation is that the Federal Reserve will announce the next round of quantitative easing, better known as QE3, this year. Jeremy Friesen at Societe Generale in Hong Kong said he believes the Fed will act possibly this month. He said, “We think the payrolls number will be very poor, which should be positive for Gold, as it would confirm that the Fed will do something at the next FOMC (Federal Open Market Committee) meeting.”

The European Central Bank announced Thursday its intention to rebuild the eurozone with new stimulus measures by purchasing sovereign bonds. Alex Merk at Merk Investments commented on how the market may be more interested in the euro. “Now, I’m not going to pretend that everything is going to be great in the eurozone, but it (the ECB’s measures ) does take off the so called ‘tail risks,’ it makes the euro less risky.” On a positive note, Merk added, “We think the euro is going to do well in the years to come. … It is becoming a different currency with different dynamics in place.”

At 9:17 a.m. (EDT), the APMEX Precious Metals spot prices were:

• Gold, $1,729.30, Up $24.70.
• Silver, $33.32, Up $0.65.
• Platinum, $1,596.00, Up $8.60.
• Palladium, $648.20, Up $0.50.

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