Jobs report pushes precious metals prices upward; Russia stockpiles Gold

English: Gold reserves per capita.

English: Gold reserves per capita. (Photo credit: Wikipedia)

Disappointing data from the monthly United States jobs report is the latest news to cause concern over the American economy and prompt a spike in Precious Metals prices. The continued lack of stronger economic statistics is propelling the anticipation of further monetary easing by the Federal Reserve. Economist Mark Zandi described the sentiment of the individual worker, stating, “They (workers) are still feeling pretty awful. They recognize that we’ve made progress, that we’ve gone from losing a boatload of jobs to seeing some growth, but that’s very little solace in the context of an (8.1 percent) unemployment rate.”

Central banks from nations around the globe have been amassing sizable Gold reserves in recent years as a reaction to the global financial crisis. The World Gold Council recently announced that Russia has doubled its stockpile in the past five years by purchasing a half-billion dollars’ worth of Gold every month. If the Fed announces further quantitative easing and world economic leaders such as Russia continue accumulating large quantities of Gold, the price of the yellow metal is likely to continue its upward climb.

At 1 p.m. (EDT), the APMEX Precious Metals spot prices were:

  • Gold, $1,738.30, Up $33.70.
  • Silver, $33.68, Up $1.01.
  • Platinum, $1,593.30, Up $5.90.
  • Palladium, $654.40, Up $6.70.
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Gold Awaits Stimulus News; America’s Recovery is Slow

After the biggest one day rally in three years, Gold has cooled for the moment. However, the break in the action may be short lived. After Friday’s weak jobs report came out, the talk of another round of financial stimulus was put back in the spotlight. “Friday’s data has pushed the (focus) straight back to the Federal Reserve, and talk of a possible QE3 is increasing now,” said Pradeep Unni, senior analyst at Richcomm Global Services in Dubai, UAE. “It seems there are limited options with the Fed other than a fund stimulus.”

It has been a while since it has been said, but the euro has shown signs of improvement. There is talk of a new plan that will help the region work through its debt and keep Greece as a member of the European Union. The European Central Bank has the option to drop key interest rates, which can give a much needed boost to the economy. “They (the ECB) have made it clear that they want the solution to come from Europe’s leaders, but the recent deterioration in economic data and slide in asset prices makes easier monetary policy inevitable,” said Kathy Lien, director of currency research at GFT in Jersey City, N.J.

The United States has seen the end of a recession and the beginning of a recovery. However, for most, the pace is excruciatingly slow. Manufacturing, auto sales and even housing has shown improvement. Jobs are growing, and so is the country’s economy. With the positive signs, one would think confidence would follow. That’s not the case. Mark Zandi, chief economist of Moody’s Analytics, said, “My sense is business people have been through a lot, and their collective psyche is very fragile.”

At 1 p.m. (EDT), the APMEX Precious Metals spot prices were:

  • Gold, $1612.30, Down $9.30.
  • Silver, $28.07- Down, $0.48.
  • Platinum, $1425.90, Down $9.30.
  • Palladium, $614.40, Up $0.40.
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