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Marin Aleksov | Nichols on Gold
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Marin Aleksov | Nichols on Gold
The Price of Gold Is Soaring Says Marin Aleksov From Rosland Capital
The price of gold jumped Thursday, (up 1.9% to $1,669.10 an ounce) as anticipation of new Federal stimulus measures worldwide grew. Its been speculated that this jump was propelled in part by an unexpected rise in jobless claims that highlighted the job market's weakness.
Although the price of gold slightly declined on Wednesday, overall the price of gold has been on a six-day streak of growth. Year over year, the price of gold is down, when it soared to $1,858.30 an ounce not long after credit rating agency Standard & Poor's downgraded U.S. debt.
The recent gold pricing is contradicted by reports from China that reflect slumped manufacture performance, according to an HSBC report. A report from the Markit firm has analyst predicting a recession for the entire European market, due to the staggering decline in business activity.
Also released on Wednesday were the notes from the Federal Reserve's recent rate-setting meeting and featured discussion of economic growth strategies. Discussions encouraged banks engaging in a third round of QE: bond-buying tactics known as quantitative easing.
Marin Aleksov, chief executive of precious metals broker Rosland Capital, believes there is potential in China, Europe and the U.S.: "There's the potential for China, Europe and the U.S. to all do QE at the same time this fall…it's the perfect storm."
Other analysts have a pessimistic approach. Earlier Thursday, President of the St. Louis Federal Reserve Bank, James Bullard, told CNBC that the notes from Wednesday’s Fed meeting were "stale" and said that he felt the major economic boosters were necessary.
Recent housing data suggest a real estate rebound, with rising prices and increased home sales. Consumer is on the mend, according to several reports. Both elements point to signs of an improving economy, and as a result, may further impede a gold rush.
But experienced analysts like Aleksov disagree. "The numbers are not good enough for the economy," he said. "We're not creating enough jobs, enough wealth. The last GDP numbers were very bad. There's a fiscal cliff coming up at the end of the year. We need to do a lot more in order to progress."
Depending on what happens at the Federal Reserve meeting in September, the price of gold could reach an all-time-high. Many believe the haven metal might be poised to break through $2,000 an ounce.
Although the price of gold slightly declined on Wednesday, overall the price of gold has been on a six-day streak of growth. Year over year, the price of gold is down, when it soared to $1,858.30 an ounce not long after credit rating agency Standard & Poor's downgraded U.S. debt.
The recent gold pricing is contradicted by reports from China that reflect slumped manufacture performance, according to an HSBC report. A report from the Markit firm has analyst predicting a recession for the entire European market, due to the staggering decline in business activity.
Also released on Wednesday were the notes from the Federal Reserve's recent rate-setting meeting and featured discussion of economic growth strategies. Discussions encouraged banks engaging in a third round of QE: bond-buying tactics known as quantitative easing.
Marin Aleksov, chief executive of precious metals broker Rosland Capital, believes there is potential in China, Europe and the U.S.: "There's the potential for China, Europe and the U.S. to all do QE at the same time this fall…it's the perfect storm."
Other analysts have a pessimistic approach. Earlier Thursday, President of the St. Louis Federal Reserve Bank, James Bullard, told CNBC that the notes from Wednesday’s Fed meeting were "stale" and said that he felt the major economic boosters were necessary.
Recent housing data suggest a real estate rebound, with rising prices and increased home sales. Consumer is on the mend, according to several reports. Both elements point to signs of an improving economy, and as a result, may further impede a gold rush.
But experienced analysts like Aleksov disagree. "The numbers are not good enough for the economy," he said. "We're not creating enough jobs, enough wealth. The last GDP numbers were very bad. There's a fiscal cliff coming up at the end of the year. We need to do a lot more in order to progress."
Depending on what happens at the Federal Reserve meeting in September, the price of gold could reach an all-time-high. Many believe the haven metal might be poised to break through $2,000 an ounce.