Precious Metals prices have ticked downward in afternoon trading, echoing the end of the week for stocks. Art Hogan of Lazard Capital Markets said of the stock market, “After having two explosive weeks to the upside, where the S& P 500 was up 3.5 percent, it’s a huge victory to come out this week virtually flat in the face of the concerns we have: the Middle East, the fiscal cliff and more bad news than good in the economic data stream.” Not mentioned was the recently-announced third round of quantitative easing, which is seen as increasing inflationary concerns.

The Gold price is still well within reach of the 2012 high of $1,790.30, and as previously reported, many hedge funds and central banks are getting back in the game. Jeffrey Sherman of DoubleLine Capital LP said, “There are a lot of hedge funds that bought call options a week or two ago. There have been big buyers after the Fed has committed to the monetization of debt.”  Reuters has more details and charts that explain this further, but Gold’s 50-day moving average broke a plane earlier this week that indicates rapidly building momentum for the metal.

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

• Gold, $1,774.10, Up $4.90.
• Silver, $34.58, Down $0.11.

Gold is continuing to rise following the abundance of economic stimulus in the global economy. Many central banks around the world have implemented plans to ease financial issues, including the United States, Europe and Japan.  These moves have had a positive impact on Gold’s pricing and they could become a growing trend.  “With the open-ended scheme to print as much dollars as needed until the U.S. economy recovers, Gold's uptrend has fewer barricades on the way at least to earlier highs,” Richcomm Global Services senior analyst Pradeep Unni said.

In Europe, there has been an upward swing that has the financial outlook more positive this week. Last week the Euro hit a four and a half month low. This week was a chance to rebound and gain back some of the lost ground.  Many financial experts believe it has more to do with politics than the actual economy.  “One of the real plus points we have had this week is that there have been no European politicians saying anything stupid, so if that can continue over the coming weeks it will help stabilize markets,” said Alastair McCaig at financial spread betting firm IG index.

In the United States, the talk over the past few weeks has been in regards to the Federal Reserve’s financial stimulus.  It has had a positive effect on the markets so far however there are some that believe there is more to be offered.  “They’re sending a message to people making long-term decisions about investment and hiring: Don’t worry about us clamping down, we are going to have accommodative policy even in a stronger recovery,” said Michael Gapen, senior U.S. economist at Barclays Plc’s investment-banking unit and a former member of the Fed’s Division of Monetary Affairs. “They are telling you, ‘We have a long way to go, and we are going to let this run.’”

At 9 am (EDT), the APMEX Precious Metals spot prices were:

• Gold, $1,787.90, Up $18.70.
• Silver, $35.18, Up $0.49.

Gold held its position well today despite a strong movement in the dollar  and weaker U.S. equities. Also, China reported low manufacturing activity, which pushed  European stocks down  for the third time in four days, worrying investors. The yellow metal was able to remain stable for the day. James Cordier at Optionsellers.com said, “Gold’s resilience stems from recently announced monetary easing in the United States and elsewhere. You’d think (a stronger dollar and weaker equities) would be a great excuse to take pretty big profits this feels more like a pause.”

The United States unemployment rate has been a major concern, not only for the American people but for the Federal Reserve, and it is one of the reasons they’re launching QE3. The unemployment rate has been well above 8 percent for the past three years, which is the highest rate since the Great Depression. " We've seen a little move upward in jobless claims over the last few weeks, but nothing to suggest the economy is in trouble.  It's more the case that we are still in a period of slow growth," said Gary Thayer, chief macro strategist at Wells Fargo Advisors in St. Louis.

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

• Gold, $1,769.80, Down $0.90.
• Silver, $34.73, Up $0.13.

U.S. stock futures and Precious Metals have edged downward this morning as the dollar firmed. “The rise in Gold and Silver will be tempered by drops in the stock market and rises in the dollar, and if this continues then the upside is limited for the time being,” Marex Spectron said in a note. “However, support remains under the market…” VTB Capital said in its own note, “Judging by the broader commodity market, QE3 euphoria from last week is now over.  Yet we… remain bullish in the long run, given the debasement of major fiat currencies as interest rates remain subdued, while liquidity boosts… will bring about inflation concerns.”

Disappointing news out of China has all eyes on the Philadelphia Federal Reserve Bank’s manufacturing report,  due later this morning. Mike McCudden of Interactive Investor said, “After what was appearing to be some decent U.S.-led support on the back of solid housing data, Chinese manufacturing numbers have come in overnight and spoiled the party. Optimists may well be gambling on a turn in Chinese fortunes soon, but whatever they are up to behind the curtain isn’t working.”

With dissenting voices from certain branches of the Fed regarding QE3, many branch presidents arefeeling the need to defend the decision. The latest is Boston Fed President Eric Rosengren, who said, “The actions taken by the Federal Reserve last week provide significant additional support to the economic recovery. They should result in stronger economic growth, and return us to full employment more quickly than would be the case absent the policy.” Many investors, and even some Fed policymakers, are particularly concerned with the fact that this round has no end date in sight.

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

• Gold, $1,766.60, Down $4.10.
• Silver, $34.53, Down $0.07.

Precious Metals prices remain flat following today’s trends. The small movement came after a decrease in crude oil by almost 4 percent for the day along with the Bank of Japan’ confirmation of further easing measures to improve the country’s economy. Stephen Platt at Archer Financial Services said, “Amid the crude oil break,  Gold is holding on to a tight range. The metal is torn by an easier U.S. money policy and some caution about when the ECB is going to turn on the monetary spigot with its bond purchases.”The price drop in oil came from sell-offs  as Saudi Arabia is attempting to control prices and liquidation has begun from Hurricane Isaac increasing U.S. crude inventories. “People are thinking that maybe the Saudis are going to produce more, and some funds are taking the opportunity to liquidate positions,” said Christopher Bellew at Jefferies Bache.

Platinum holdings have significantly increased  with investors feeling uneasy about the supply interruption that occurred at Lonmin’s Marikana mine in South Africa. The miners are scheduled to return to work tomorrow after coming to an agreement yesterday on a pay raise. David Lennox, a resource analyst at Fat Prophets, said, “What’s happened in South Africa has been the prime driver, but there would have been a rub off from what happened in terms of quantitative easing.  People have also taken the opportunity to run into platinum on the back of the discount to Gold.”

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

• Gold, $1771.80, Up $1.60.
• Silver, $34.65, Down $0.08.

The Gold price rose this morning on news that the Bank of Japan has joined the United States Federal Reserve and the European Central Bank on the  quantitative easing bandwagon. Max Cohen of Spreadex Ltd. said, “As central banks around the world pull together to provide stimulus and growth to the markets, currencies are at risk of devaluing, and as a result of this, Gold has climbed to its highest level in more than six months.” Austin Kiddle of Sharps Pixley said, “I believe that the central bank moves will be a strong support structure for the current range that Gold is in, and I feel that they are part of the ‘holy trinity’ of factors that will see Gold continually edge upwards in the future.” According to Kiddle, the other parts to the ‘holy trinity’ are global political tensions and a rise in Gold production costs.

The quantitative easing announcements have not sat well with everyone, however.  The Fed’s James Bullard said, “We should take a little bit more (of a) wait-and-see posture.” He added, “I would have voted against it based on the timing. I didn’t feel like we had a good enough case to make a major move at this juncture.” The president of Germany’s Bundesbank  pointed to Goethe’s tragedy Faust,  saying that the play identifies “the core problem of today’s paper money-based monetary policy” and the “potentially dangerous correlation of paper money creation, state financing and inflation.”

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

• Gold, $1,772.90, Up $2.80.
• Silver, $34.64, Down $0.09.

John Stephenson of First Asset Investment Management Inc in Toronto explained this a little more, saying that “People will see  commodities as something they want to hold, because they see these moves as inflationary. It’s hugely bullish in the short run, now that all of the central banks seem to be singing from the same hymnal.” said Jack Ablin of BMO Private Bank in Chicago. “The Fed statement does change things. It really shows the Fed’s unwavering desire to inflate asset prices, and commodities will certainly be part of that.”

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

• Gold, $1,772.90, Up $3.30.
• Silver, $34.86, Up $0.49.