Gold & Silver Market Report – 10/26/2012

Brandi Brundidge

10/26/2012 3:59:00 PM

GOLD’S PRICE IS STEADY; SPAIN’S UNEMPLOYMENT RATE HITS 25 PERCENT

Gold has remained flat for the day after data indicated an improved U.S. economy for the third quarter. Bloomberg conducted a survey of 26 analysts in which 14 of them expect the prices to increase next week; 9 are bullish for the yellow metal and 3 were neutral. “The whole economic situation is going to get worse rather than better,” said Thorsten Polleit, chief economist at Degussa Goldhandel GmbH. “Paper currencies have already lost their function as a store of value and it’s getting worse. People are increasingly putting their savings into Precious Metals.”

It is official, one in four Spanish workers were unemployed in the third quarter with the unemployment rate hitting 25 percent, a level not seen since the mid-1970s. “There is a debate over the optimistic growth outlook for next year by the government, which is given little credibility. Weaker growth than expected, coupled with austerity, could easily see unemployment hit 26 percent next year," said Silvio Peruzzo, economist at Nomura in London. The market is forecasting the unemployment rate will not fall beneath 24 percent until 2014.

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

• Gold, $1,712.30, Down $1.20.
• Silver, $32.11, Up $0.01.
• Platinum, $1,544.90, Down $21.40.
• Palladium, $598.50, Down $7.00.

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