Daily Gold & Silver Market Report – 8/12/2015

Brandi Brundidge

8/12/2015 11:35:00 AM

GOLD’S SAFE HAVEN APPEAL INCREASES; QE4 MAY BE NEAR

Gold is up Wednesday morning for the fifth consecutive day on concerns over the recent devaluation of China’s currency. Investor reaction is this may cause a currency war, which would boost Gold’s safe-haven appeal.  “The bears have been running the show now for some time and that devaluation (on Tuesday) was a bit of a bash in the eye for the bears... but we haven't seen any strong fresh buying, it is more a short-covering rally,” Sharps Pixley CEO Ross Norman said.

Euro Pacific Capital CEO Peter Schiff, known for successfully predicting the 2007 housing crisis, commented on Tuesday’s statement the People’s Bank of China would devalue the Chinese yuan around 2 percent compared to the U.S. dollar. The market is aware of the Federal Reserve’s plan to increase interest rates, however, Schiff believes the Fed will instead begin another round of quantitative easing (QE).  “They are going to do QE4, they're going to do QE5, they're going to do QE's indefinitely until a currency crisis ends the party and they can't do it anymore. And that crisis is going to come,” Schiff said. “That is what the drug addicts on Wall Street want. They want another fix, and I think the pushers are going to provide it, unfortunately. This economy will be in recession if the Fed raises rates, and it'll be in recession even if they don't raise rates.”

At 12:33 P.M. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,125.30 Up $14.60
• Silver, $15.61 Up $0.21
• Platinum, $1,000.60 Up $7.30
• Palladium, $622.50 Up $19.30

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