Morning Gold & Silver Market Report – 10/2/2012

Geoffrey Varner

10/2/2012 8:05:00 AM

DEUTSCHE BANK EXPECTS MORE GLOBAL EASING

Gold prices were down slightly during Tuesday’s European trading hours. Analysts at Deutsche Bank said they expect further global monetary easing. With the timing and size of future policy action, they believe Gold prices will likely exceed $2,000 an ounce in the first half of 2013.

Credit Suisse upgraded their ranking of United States banks on Tuesday. Analysts at the company said they believe loan growth and asset quality will “surprise on the upside.” They also feel that U.S. banks compare favorably with their European counterparts. Other risks cited by Credit Suisse included valuations and provisioning. Generally speaking, the other factors reviewed were in favor for the U.S. banks.

Spanish 10-year bond prices were near session lows and U.S. stock index futures rose amid low trading volumes on Tuesday. There is some thought the Spanish government will soon request a bailout, which some consider a necessary step to alleviate the eurozone’s debt crisis. Paul Mendelsohn, chief investment strategist at Windham Financial services in Charlotte, Vermont said, "I think the market feels that we are closer to some type of action and resolution in terms of the Spanish problem, (and) that's certainly helping markets this morning."

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

• Gold, $1,777.60, Down $4.70.
• Silver, $34.74, Down $0.22.
• Platinum, $1,680.50, Down $2.30.
• Palladium, $649.00, Up $2.50.

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