Gold & Silver Daily Market Recap: August 28th, 2012

It was a range trading day for precious metals as traders eye Jackson Hole meeting for the next QE3 statement.

Spot gold was range bound in the afternoon session touching $1672, before scaling back. The bullion remains at a 4 month high as Central bankers and finance ministers from around the world are set to meet at Jackson Hole, Wyoming on Aug. 31 and Sept. 1. Investors expect hints; if not the launching of QE3; from Fed chairman Ben Bernanke on steps the central bank might take to jump start a U.S economy that has remained sluggish.

In U.S data, consumer confidence figure for August came in at 60.6, well below the expected number of 65.8 and down from 65.4 in July. The Richmond manufacturing index registered -9, better than the expected number of -11 and up from -17.

The Jackson Hole conference is not the forum for Bernanke to make any strong commitment to easing. However, this will not prevent the market from attempting to “read between the lines” — leaving room for all manner of interpretations and price responses. In addition, as we approach Bernanke’s speech on Friday, precious metals will remain at the mercy of US data flow. Said Standard Bank

The Euro dollar remained jittery as well with news from European Central Bank's Mario Draghi, would be skipping the Jackson Hole Economic Symposium as it would appear they have not finished hammering out the details of the restrictions put in place on bond yields of struggling European nations.
Since August 3rd, Gold has gained 3.1% and is on track for its largest monthly percentage rise since January, This has been driven largely by expectations the Federal Reserve and the European Central Bank will both introduce quantitative easing.  Expect gold to remain largely range bound for the week, Friday could see some major fireworks and this will be whether or not Fed Chairman Bernanke announces QE3 or not. Spot gold could potentially see a $50 swing either way.

Spot silver continues to outpace its bigger brother gold the metal touched a 4 month high on Monday at $31.28. The gold silver ratio pushed lower again for the fifth day touching 53.63. The dual role metal is susceptible to wild swings because of the dual role nature of the metal.  The metal has taken a little breather and could return to its volatile self on Friday.


  Gold Silver
Support $1640/$1600 $29.91/$29.00
Resistance $1690/$1684 $31.50/$32.50


August  28th Closing Prices

Gold $1667
Silver $30.88
Platinum $1519
Palladium $639




  • 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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