Gold & Silver Daily Market Recap: August 17th, 2012

Spot gold back tracks amid positive U.S consumer sediment. The metal continues to be driven by the perception that further monetary stimulus from the US is likely from the US at the next Federal Reserve meeting.

Strong U.S data was on the menu to end the week, University of Michigan's consumer sentiment index, showed a reading of 73.6, beating the forecast by 1.1 points. The yellow metal came off of its highs during European trading hours of $1621 as strong U.S data points to the on/off again of QE3 off again. The U.S dollar rallied against the Euro causing profits to be secured in gold.

"Gold has attempted to rally above $1,620 on the back of a stronger euro, but failed to gain traction," Said Standard Bank.

In Europe, Finland has been taking steps to prepare for a Eurozone breakup. The AAA rated nation has one of the strongest economies in the Eurozone and it plays a major role in the EU. The Finnish Foreign Minister also said, “Let me add that the break-up of the euro does not mean the end of the European Union. It could make the EU function better.” Which is a stark contrast to what Germany’s Angela Merkel, or the European Central Bank’s Mario Draghi have been saying. They have been trying to reassure investors that they are willing to save the euro “at all costs” we are now left to wonder who do we believe.

The major story of the day was the Platinum, the metal roared higher amid violent strikes in South Africa. The metal jumped to $1475 as there are reports police have opened fire on armed protestors and there have been reported deaths. It is interesting to see how this plays out for the PGM's, palladium followed platinum higher.

Spot silver ended slightly lower after again challenging the top end of the range at $28.30. The range has now got much tighter with the downside at $27.91. The gold silver ratio continues to look weak and is looks to target 56.50 in the short term. Expect another week of this range trading as August 31st is around the corner.


  Gold Silver
Support $1600/$1550 $27.06/$26.50
Resistance $1625/$1640 $28.60/$29.50


August 17th Closing Prices

Gold $1616.30
Silver $28.00
Platinum $1454
Palladium $650




  • United States Mint
  • Royal Canadian Mint
  • The Perth Mint Australia
  • Johnson Matthey
  • A-Mark Precious Metals, Inc.
  • Laurentian Bank
  • Engelhard
  • Brinks

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