American stock futures and Gold  are slightly lower this morning  as investors continue to analyze the latest Federal Open Market Committee minutes. The top story hasn’t changed all eyes are firmly on a small town in Wyoming. “Given all the mixed messages, the Jackson Hole symposium next Friday is building up to be a key event as we look forward to the latest download from the chairman himself,” said James Reid of Deutsche Bank.

Yesterday, the St. Louis Federal Reserve president said that more easing may be unnecessary. Today, one of the longtime supporters of further quantitative easing by the Fed, Chicago Fed President Charles Evans,  stated his view on the matter. “The outlook for growth is 2 percent, if we are lucky 2.5 percent, over the next 18 months to two years. Back in the spring, we thought it was going to be 2 1/2, 3 percent. … We stepped down our outlook unemployment is 8.3 percent there’s a lot of reason to do more,” he said.

Though the Gold price has come off the recent rally this morning, Pradeep Unni of Richcomm Global Services  said that it likely won’t last long. “Having got the necessary signals from the Fed for QE3, the market is just waiting for a confirmation to spike higher,” he said. “Any consecutive release of weaker than expected economic data will only add fuel to the fire.”

At 9 a.m. (EDT), the APMEX Precious Metals spot prices were:

• Gold, $1,668.90, Down $2.40.
• Silver, $30.58, Up $0.04.

The  Gold price has moved more this week than in the past four months. The movement reflects growing eagerness for the Federal Reserve to provide further stimulus measures to boost the economy. The minutes from the Federal Open Market Committee’s meeting, released yesterday, reflect that several committee members support additional fiscal accommodation unless the United States economy suddenly becomes more healthy. Adam Klopfenstein at Archer Financial Services Inc. said, “Gold is exploding today as inflation concerns are back. A combination of rising commodity prices and the chances of more easing coming in the U.S. is stoking inflation worries.”

Marc Faber, publisher of “The Gloom, Boom & Doom Report,” predicts that  the world is directed toward a recession with a 100 percent probability. Although Faber may seem to only forecast cynical views, many observers know such an occurrence is likely. Faber said, “Europe is already in recession. Germany is still growing very, very slightly, but is likely to go into recession soon. The U.S. economy has decelerated, and I don’t see much growth in the next six to 12 months.” Faber said boosting the U.S. economy will take “massive easing.” But with the United States deficit currently at $1.3 trillion and growing, he said he doesn’t expect much change in the financial situation.

At 5 p.m. (EDT), the APMEX Precious Metals spot prices were:

• Gold, $1,671.40, Up $32.40.
• Silver, $30.61, Up $0.97.

Precious Metals prices added to early gains after the  release of the weekly jobless claims report. After an upward revision from last week’s numbers, the report showed increases across the board in new claims, existing claims, and the four week moving average. Jumps in the prices of Gold and Silver are most likely due to the fact that yesterday’s Federal Open Market Committee (FOMC) meeting minutes revealed that a third round of quantitative easing (QE3) was likely unless there was significant improvement in economic reports, and this report certainly does not indicate improvement.

In stark contrast to the minutes of the FOMC meeting released yesterday, St. Louis Federal Reserve President James Bullard said, “If we were to resume, and I think we will, 2 percent growth, maybe a bit stronger than that in the second half of the year, unemployment ticks down through the rest of the year, that’s not a great outcome but  that’s a good enough outcome to keep us on hold,” regarding QE3. Bullard also said the market may be setting itself up for disappointment. He said, “Probably the best thing to talk about here is what would that action really be? I think the markets have the idea of some gigantic action. I’m not sure if the data really warrants that.”

The euro continues to rise against the dollar, which is supporting the Gold price’s recent moves. Chen Min of Jinrui Futures in China said, “The Fed’s tone is totally different  in the minutes from previous comments, and that helped Gold break from the previous range and move into a higher price range ahead of the peak consumption season.”

At 9 a.m. (EDT), the APMEX Precious Metals spot prices were:

• Gold, $1,664.20, Up $24.90.
• Silver, $30.50, Up $0.83.

Just a day after hitting a two month high, the Gold price is now sitting at a 16 week high after therelease of the latest Federal Open Market Committee minutes. In the minutes, the Fed said, “Many members judged that additional monetary accommodation would likely be warranted fairly soon unless incoming information pointed to a substantial and sustainable strengthening in the pace of the economic recovery.” In short, unless economic reports start showing significant growth and signs that it will stay that way for a long period, a third round of quantitative easing (QE3) is highly likely and may be coming soon.

Michael Gayed of Pension Partners LLC said, “Gold is surging on renewed expectations of inflationrising after easing.” During two rounds of quantitative easing, from December 2008 to June 2011, the Gold price jumped 70 percent. All eyes continue to be on the Fed’s Jackson Hole, Wyo., economic symposium for more signs of QE3. That meeting is to be held late next week.

At 5 p.m. (EDT), the APMEX Precious Metals spot prices were:

• Gold, $1,655.10, Up $13.70.
• Silver, $29.89, Up $0.36.

The primary topic of discussion today will be the release of the minutes from last week’s Federal Reserve meeting. Ahead of that announcement, speculation will abound. Some investors will want more quantitative easing, while others will want more of what we have been getting: inaction. Speaking on CNBC, Art Cashin, director of floor operations at USB, said,  “You’re going to need a translator for these minutes.”

The Gold price hit a three month high in overnight trading, going as high as $1,645. Since 2009, central banks have been net buyers of Gold, regardless of the spot price. According to the World Gold Council, central banks bought  158 tons in the June quarter.  The ever present eurozone crisis and never improving American financial situation has presented central banks across the globe with a situation in which the yellow metal is the perfect safe haven for their currency reserves.

At 9:09 a.m. (EDT), the APMEX Precious Metals spot prices were:

• Gold, $1,640.40, Down $1.00.
• Silver, $29.48, Down $0.06.

By the close of the business today, the gold price made another significant jump in price. The yellow metal has had a very strong month of August with prices going up more than $35 per ounce.  The main reason for the increase in value is the continued talk of economic aid for global leaders.  Europe, China, and the United States have all been discussing the probability of monetary easing by central banks. While there has been no action taken yet, many experts believe it is a matter of when not if.

In Europe, there was an unusual sight in the financial reports: Positivity.  The euro jumped to a seven-week high on the hope that the European Central Bank will be able to help the struggling region with a stimulus package.  " The market has moved to the belief that (the ECB) is going to do whatever it takes," said William Larkin, fixed-income portfolio manager at Cabot Money Management in Salem, Massachusetts. There are meetings scheduled in the next few days between leaders in the area to discuss possible options.

In the United States, there seems to be a trend of mixed reports on the direction of the economy. Today there was a report that showed leading economic indicators in the country were up 0.4% in July.This report is considered a good indication of the outlook of the economy.  " The expansion continues, no double-dip recession, just continued moderate, sub-par growth," said John Silvia, chief economist at Wells Fargo.

At 5:00 pm (EDT), the APMEX precious metals spot prices were:

• Gold, $1638.50, Up $17.00.
• Silver, $29.37, Up $0.67.

The Gold price was at  a two month high this morning, tracking the euro upward. VTB Capital analyst Andrey Kryuchenkov said, “A break above $1,630 is very significant, as we breach the June-July and early August range. Buy orders were triggered, with the dollar index also slipping below support … at early July lows. This is on speculation that the ECB (European Central Bank) will act.”  Kryuchenkov went on to say that as normal, Gold is trading against the dollar in this case.

Today’s trading aside,  the dollar has enjoyed a rally lately  on risk aversion. However, that could all be undone, and the culprit could be the United States Federal Reserve. Simon Derrick of BNY Mellon said, “If you look at the dollar’s performance over the last few years when quantitative easing (QE) was introduced, the dollar was absolutely weaker. … Were they to reintroduce QE, would that reintroduce dollar weakness?  Absolutely.” Investors are looking to the Jackson Hole Economic Symposium, scheduled for next week, for a sign that another round of QE is on the horizon.

Today’s rally in the euro could be  things getting better for the euro before they get worse. Jane Foley of Rabobank International said, “The market may be optimistic that the ECB will act to subdue peripheral yields in September, but that implies that there is plenty of scope for disappointment.” This scope for disappointment is something that is common when the market pre prices events such as central bank interventions that don’t always see the light of day.

At 9:34 a.m. (EDT), the APMEX Precious Metals spot prices were:

• Gold, $1,638.80, Up $17.40.
• Silver, $29.31, Up $0.61.

Bullion prices have risen on investors’ hopes for further stimulus measures from policy makers. Commenting on a higher Gold price today, Chintan Karnani, chief analyst at Insignia Consultants in New Delhi, said, “Prices continued to trade in a tight range amid a lack of major news from the U.S. or Europe.”  Investors began buying more Platinum on growing concerns out of South Africa  that there may be a shortage in that metal’s production after 44 people were reported killed during a strike at a Lonmin mine. “Platinum could test its 200 day moving average above $1,500 on the possibility that the Marikana mine can be shut down for an extended period of time or that strike ends up spreading to other mines,” said Phillip Streible at futures brokerage R.J. O’Brien. 

Steve Cortes, founder of research and consulting firm Veracruz, is confident on his prediction that China’s slower than normal financial trading is a sign that its economy is declining far more than investors realize. Cortes said, “China is trading at its lowest levels since the 2007 crisis, and that’s a big problem for the markets.” Cortes also confirmed that he is optimistic with the American economy moving into a strong territory. Cortes said, “We’re getting a lot of good reports -- not just housing, but unemployment claims are falling, retail chain store sales  are improving, and we just got better confidence data.”

At 5:05 p.m. (EDT), the APMEX Precious Metals spot prices were:

• Gold, $1,621.90, Up $4.00.
• Silver, $28.87, Up $0.76.

The early morning trading hours have seen  Precious Metals prices going slightly lower. Gold investors have been largely on the sidelines, as they await further announcements later this week from eurozone policy makers. Several rounds of talks are scheduled between Germany, France, Greece and the president of the euro group. Platinum prices are seen as simply giving back a portion the sharp increases experienced last week.

The eurozone crisis is about to command center stage again. August is typically a slow month for the global financial markets, and this August even more so, as the news has been dominated by the London Olympic Games. Greece is going to gain attention as it makes an appeal this week to be granted a two-year extension of the deadline to meet austerity measures. However, Spain is drawing the biggest concern, as markets expect  Spain to seek a bailout  from the European Central Bank (ECB). “The ECB is playing this delicate balancing act. They know they cannot let Spain collapse, but they know they must get them to agree to this conditionality. The two sides are just playing a game of chicken between one another,” said Giles Keating, head of research at Credit Suisse.

At 9 a.m. (EDT), the APMEX Precious Metals prices were:

• Gold,$1,613.30, Down $4.60.
• Silver, $28.08, Down $0.04.

George Soros, a famous global investor, sold his shares in American financial stocks and  used the proceeds to buy Gold.  It is worth noting that he did so at a time when the Dow crossed 13,000, its highest level since April 2008. Soros also is noted for his close ties with the Obama administration. When a person of his wealth and connections pulls out of United States financial stocks to buy Gold, it does not go unnoticed.

London based clearing house CME Clearing Europe has followed the lead set by CME Clearing in the United States in October 2009 and is now accepting  Gold as collateral  to cover margin requirements. This is a further indication that Gold is now viewed as a currency and not a commodity. CME Clearing Europe was launched in May 2011.

A World Gold Council report this week indicated that  central banks bought Gold at a record pace in the second quarter of 2012.  This trend of moving away from paper currencies to Gold began in 2010. In 2010, central banks became net buyers of Gold for the first time in decades however, there were still some countries that were net sellers. In 2011, buying increased, and there were no central banks that sold more Gold than they purchased. In 2012, central bank purchases have continued to climb. Investors should draw their own conclusions on why banks are moving away from paper currency and what this ultimately will mean for Gold prices.

At 5 p.m. (EDT), the APMEX Precious Metals prices were:

• Gold, $1,615.90, Down $1.80.
• Silver, $28.12, Down $0.20.

American stock futures received a boost this morning, thanks to German Chancellor Angela Merkel. Overnight,  Merkel reaffirmed Germany’s commitment to the euro, much like what European Central Bank President Mario Draghi said recently. “With Merkel voicing her support for Draghi’s plans and restating that all measures would be taken to defend the euro, investors are breathing a sigh of relief this morning," ” said Mike McCudden of Interactive Investor. 

Speculation that a Greek exit from the eurozone is building today, as Greek Prime Minister Antonis Samaras is scheduled to meet with Merkel today and French President Francois Hollande on Saturday. Recently, there has been  talk of Greece seeking to extend its austerity program  over four years instead of the two years it originally agreed upon. This might not sit well with Germany and France, which are reportedly finished compromising with Greece. Samaras and his political party promised this extension during Greek elections, and a failure to make it happen might cause further political issues in that country.

Gold and Silver prices have recovered from slight early morning losses on Merkel’s pledge to the euro. Nick Tevethan of ANZ in Singapore said, “The (Gold) market is still moving on changing expectations of central bank actions and is so far unwilling to push prices out of the $1,590 to $1,630 range.” The United States Federal Reserve’s meeting set for the end of August in Jackson Hole, Wyo., is likely to send Gold out of that range.

At 9 a.m. (EDT), the APMEX Precious Metals spot prices were:

• Gold, $1,618.90, Up $1.20.
• Silver, $28.35, Up $0.03.