Gold News & Info

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— Gold slipped another 0.5% after weak eurozone data pressured risk assets and boosted the dollar. Germany�s Ifo index of business confidence fell to a 30-month low and the eurozone flash PMI, a measure of manufacturing health in the region, fell to a 40�month low, with Germany's falling much more than expected. A slowdown in Germany, Europe's largest economy, could hamper solutions to the euro crisis by making the already-reluctant nation even less likely to back bailouts. The Dow and Global Dow dropped again, deepening the week's sell-off, while oil lost for the fifth straight session to close under $86 for the first time since early July. The other precious metals tracked gold lower, with silver dropping 0.5%, platinum 0.8%, and palladium 0.2%.

At the Comex close: December gold slipped $7.80 to $1,701; December silver dropped 17 cents to $31.62; January platinum shed $12.90 to $1,562.70; and December palladium lost $1.10 to $592.75 an ounce.

The Fed released its post-meeting statement today, expressing concern about the economy and renewing its commitment to QE3. Very little changed in its outlook, leading nearly 70% of economist surveyed by Bloomberg to say that QE3 will continue throughout 2013, and probably longer, in order to drive down the jobless rate. In a separate survey, 72% of economists expect the Fed to supplement QE3's monthly purchases of $40 billion in mortgage-backed securities with an additional $45 billion in monthly Treasury purchases, beginning in January.

Because of the Fed's ultra-easy monetary policies, Global Hunter Securities raised its average gold price forecast by 23% to $1,850 an ounce next year, and said gold could break $2,000 by early 2013. GHS reported to clients that �the commitment from the Federal Reserve to maintain an accommodative policy until 2015 � provides a strong foundation for what we expect will be continued gains in gold prices into 2014,� according to Marketwatch. Similarly, hedge fund guru David Einhorn of Greenlight Capital told clients today that the Fed's "spending spree" means "a large allocation to gold still seems like a very good idea."