Precious Metals Rally on Draghi’s Pledge & Hopes for Fed’s Stimulus
Within our mandate, the ECB is ready to do whatever it takes to preserve the euro. Believe me, it will be enough.
He also voiced concerns about soaring borrowing costs:
To the extent that the size of these sovereign premia hamper the functioning of the monetary policy transmission channel, they come within our mandate.
The yield on the Spanish 10-year bonds retreated below 7 percent after the comments.
Metals were also stronger on speculations that the US Federal Reserve may stimulate the economy as the recent data was not very good, especially from the housing sector. Yesterday, the report showed that the annual rate of new home sales fell to 350,000 in June from 382,000 in May. Today, the report on pending home sales was released, demonstrating the drop by 1.4 percent.
Gold climbed from $1,603.80 to $1,613.90 per ounce as of 20:47 GMT on COMEX today. Silver was up from $27.30 to $27.43 per ounce. Palladium rose from $566.45 to $570.25 today. Platinum advanced from $1,395.70 to $1,401.20 in New York.
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