Market Update: Precious Metals in Holding Pattern While Markets Ponder Spain

After a week of lateral movements, gold closed firm on Friday at $1766.75. Even though Americans are happier than they have been in 5 years, it was not enough to stave off a drop in the S&P 500 and a modest decline on the NYSE amidst concerns of a Spanish bailout. This no doubt lent a hand to bull gold’s solid technical advantage. Precious metals were mixed, with silver taking a modest pause at $33.79. Noting bullish attitudes towards palladium, it is now on the daily watch board of major metal traders.

Precious metals on the move

Spot price of each metal at week’s end, and change over previous Friday:

  • Gold: $1,766.75, down 1.0%
  • Silver: $33.79, down 3.0%
  • Platinum: $1,678, down 1.9%
  • Palladium: $650, down 2.5%

In the News

American enthusiasm overshadowed by uncertainty in overseas markets, or is it just QE3 funk?
“The predictions have been for weaker earnings, and we’ve heard a few companies saying things are slowing down a little bit in various places, especially overseas.” — Randy Warren, Chief investment officer of Warren Financial Service (link)

What do you say to gold bears who insist that the metal has no value? This:
“The last time I checked, bonds fall in and out of favor as well, with valuations fluctuating along with perceptions about the future. Secular and cyclical rallies, dips, and crashes are innate features of the markets we use to trade assets. Arguing that gold has a different degree of troughs and heights does not put it in a class alone.” — Dr. Duru Ahanotu, Ahan Analytics, LLC (link)

Long-term outlook

QE3.5 likely? Credit Suisse says yes
Predicts infinite rise to accompany the infinite easing. (link)

India’s latest support of physical gold
With the wedding season intensifying this month and Diwali coming in November, physical gold prices should see an upturn thanks to India, assuming that inflation in China does not curb their appetite for the yellow metal. (link)

The week ahead

  • Oil’s surge in the market pressing into global profits?
  • Syria and Turkey to further disrupt oil markets?
  • High anticipations for jobs and earnings reports in US
  • Now that is has won the Nobel Peace Prize, will the EU cancel the divorce?
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