In his speech from Jackson Hole, Wyo., on Friday morning, Federal Reserve Chairman Ben Bernanke said, “The stagnation of the labor market is a  particularly grave concern  because persistently high levels of unemployment will wreak structural damage on our economy that could last for many years.” He also said that although you must weigh the costs of further stimulus, these costs seem manageable. All in all, the markets reacted as if the  Fed was paving the way for more monetary easing. Now that the Jackson Hole speech has been delivered, Europe will again take front and center. There are some key events taking place in September.

Markets are still sorting out European Central Bank President Mario Draghi’s sudden cancellation of a speech he was supposed to make at Jackson Hole. The speech was advertised well in advance and then canceled on the eve of the event. Is it that he had nothing to say? Or was it that what he had to say might have upstaged Bernanke? It has been in the news that German Central Bank Chief Jens Weidmann has threatened to quit on several occasions due to his  opposition to Draghi’s new bond purchasing plan. Weidmann has expressed great displeasure at plans to lower Italian and Spanish borrowing costs through bond purchases. Draghi made a vow July 26 to do whatever it takes to save the euro, and the world still awaits what that actually means.

The world will need to wait until September for answers, as we close out August and enter the Labor Day weekend. Enjoy!

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

• Gold - $1,692.20, Up $36.60.
• Silver - $31.79, Up $1.34.

The much anticipated Jackson Hole, Wyo., speech took place this morning, with Federal Reserve Chairman Ben Bernanke giving indications that the  Fed will soon embark on another round of bond buying, otherwise known as quantitative easing (QE). “It is important to achieve further progress, particularly in the labor market,” Bernanke said. “Taking due account of the uncertainties and limits of its policy tools, the Federal Reserve will provide additional policy accommodation as needed to promote a stronger economic recovery and sustained improvement in labor market conditions in a context of price stability.” Bernanke  cited previous rounds of easing as effective in stimulating economic development and job creation  without hastening inflation.

The Gold price has had a turbulent morning. The metal fell immediately after Bernanke’s speech but quickly rebounded, leaving  Gold at its highest level since April. “The main catalyst for the reversal in Gold has been that Bernanke used the words “grave concern” and the interpretation is that there’s going to be more QE if he’s using such dire projection for the economy,” said Jeffrey Sica, chief investment officer of SICA Wealth Management. Today’s rise in Gold price could be the first substantial gain in a rally that some  analysts predict to breach $1,900 by year’s end.

At 1 p.m. (EDT), the APMEX Precious Metals spot prices were:

• Gold, 1,681.20, Up $25.60.
• Silver, $31.23, Up $0.88.

U.S. stock futures and Precious Metals are  enjoying a boost this morning  in anticipation of Federal Reserve Chairman Ben Bernanke’s speech at Jackson Hole, Wyo., set to begin at 10 a.m. (EDT). Many investors are expecting Bernanke to strongly hint about a new round of quantitative easing, if not deliver an outright announcement. Peter Cardillo of Rockwell Global Capital said, “Obviously the market has discounted the fact Mr. Bernanke is not going to announce (a third round of quantitative easing), but he will acknowledge the fact there is a growing possibility that it could happen, so I think that’s what the market is looking at.”

The World Gold Council is suggesting a creative way of looking at Gold in the eurozone. Many pundits have suggested that troubled eurozone countries sell Gold to take care of their debts. This ill advised idea sounds like a simple resolution, but of course it is more complicated than that. The World Gold Council has suggested bonds and loans backed by Gold. Some groups (LCH.Clearnet, Intercontinental Exchange, and the Chicago Mercantile Exchange) have begun accepting Gold as collateral for margin requirements recently.  Gillian Tett of Financial Times wrote  that this “suggest(s) that a slow evolution of attitudes is under way -- not so much in terms of the desirability of Gold per se, but the increasing undesirability and riskiness of other supposedly ‘safe’ assets, such as government bonds.”

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

• Gold, 1,662.90, Up $7.30.
• Silver, $30.79, Up $0.34.

Investors are patiently waiting to see if Federal Reserve Chairman Ben Bernanke will announce a stimulus plan to boost the American economy when he speaks Friday from Jackson Hole, Wyo. The sentiment is mixed whether the Fed is set to launch another round of quantitative easing or continue to postpone further measures. “The U.S. data has been mixed, so people are unsure about tomorrow,” said Frank Lesh at FuturePath Trading LLC. “Also, the worries about Europe are back in the forefront, and investors are moving out of commodities.”

September is usually an eventful time in the financial markets, and this year could be even more so with the American presidential election ahead of us, among other things. The eurozone is still trying to contain its financial crisis, as European leaders and policy makers are struggling to come to a resolution. China’s recent economic data show it is a nation struggling, keeping investors skeptical whether the Chinese financial market will pick back up or not. The American economy has been dealing with both optimistic and pessimistic data, which most recently has created anxiety about whether QE3 will be introduced. 

At 5:02 p.m. (EDT), the APMEX Precious Metals spot prices were:

• Gold, $1,656.40, Down $5.10.
• Silver, $30.50, Down $0.43.

Precious Metals prices were down across the board at midday, moved partially by growing sentiment that the Federal Reserve may not announce the expected monetary measures the markets are looking for. Another round of monetary easing is seen as being a strong positive for Gold. “The stock market is at four year highs,  recent data from the United States has been better than expected, so why would they do anything, particularly before an election?” asked Citigroup analyst David Wilson. All eyes will be on Fed Chairman Ben Bernanke and his speech at the Jackson Hole, Wyo., meeting Friday. Also moving the Precious Metals markets is  a disappointing report out of Europe  showing a decrease in economic sentiment.

Personal consumer spending increased in July  to a five month high, according to data from the Commerce Department. Falling gasoline prices coupled with moderate increases in income to provide consumers a bit more to spend this midsummer. Despite July’s increase, consumers have been cautious on spending for most of the year, with a decrease in June and a flat report in May. “In the first quarter of the year, Americans saved less in order to spend more,” said Chris Christopher, senior economist at IHS Global Insight. “In the second quarter, job prospects were not very promising, so Americans put more money aside and spent less.”

At 1 p.m. (EDT), the APMEX Precious Metals spot prices were:

• Gold, $1,656.30, Down $5.20.
• Silver, $30.42, Down $0.51.

Precious Metals are mostly flat this morning as the release of the weekly jobless claims report has had little effect on Gold and Silver.  The four week moving average of new claims rose by 1,500, while the week to week change was flat. The main focus of the markets continues to be the Jackson Hole Economic Symposium, and, more specifically, Federal Reserve Chairman Ben Bernanke’s speech Friday. Daryl Guppy, chief executive at Guppy Traders, said, “We are sitting back on this (long term uptrend) point (in the stock market) so  we either see a strong reaction away or a strong break awayfrom this level (in response to Bernanke). And that’s the key factor we’re seeing across the board, because we are sitting on critical levels.”

Europe is clearly taking a backseat to the Fed’s potential monetary easing announcement, but the European Central Bank (ECB) is readying for an ECB Governing Council meeting next week. James Reid of Deutsche Bank said, “For now, Europe is in a holding pattern  ahead of clarity surrounding the next move in the great ECB bond buying maneuverings, and the U.S. is in limbo ahead of Bernanke’s Jackson Hole appearance tomorrow. For the latter, speculation mounts that Bernanke won’t say anything overly new in his speech.”

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

• Gold, $1,664.70, Up $3.30.
• Silver, $30.91, Down $0.02.

Investors are concerned about how the Federal Reserve might react to the reported 1.7 percent growth in the American economy from April through June. The Fed stated today that the economy has continued to improve gradually from July into August, based on positive data reported in housing and retail sales. James Kee at South Texas Money Management understands that the Fed has boundaries. He said, “My advice is not to think that the Fed has silver bullets   there is a limit to what you can accomplish on the monetary side.” Gold was affected today by the pessimistic views that stimulus measures will not be announced by Fed Chairman Ben Bernanke. An analyst suggested that  it is not unusual for Gold to react this way by losing some of its gains before it has another successful run. 

Crude oil prices declined today after Hurricane Isaac made landfall and was downgraded to a tropical storm, causing little damage to oil facilities. “It is expected that oil production in the Gulf of Mexico will quickly return to normal,” said Carsten Fritsch, an oil analyst at Commerzbank in Frankfurt.

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

• Gold, $1,657.00, Down $11.20.
• Silver, $30.78, Down $0.20.

The Gold price has been mostly flat this week in anticipation of the United States Federal Reserve possibly giving some direction to the market.  This week’s meeting in Jackson Hole, Wyo., has been the center of attention for economists. On Friday, Fed Chairman Ben Bernanke will address the public.While the question remains whether there will be another round of monetary easing, if the answer is “no,” it could affect Gold’s price. “We see near term risks of a reversal if Jackson Hole does not deliver what the market is hoping for,” said Nick Trevethan, senior metals strategist at ANZ in Singapore.

The issues around the European debt crisis have been highly debated among the region’s leaders.Today, European Central Bank (ECB) President Mario Draghi has taken exception to criticism by German bankers and politicians.  Draghi was quoted in a German newspaper as saying, “The ECB is not a political institution. But it is committed to its responsibilities as an institution of the European Union. As such, we never lose sight of our mission to guarantee a strong and stable currency. The banknotes that we issue bear the European flag and are a powerful symbol of European identity.”

In the U.S.A., a trend of economic growth could hamper any decision to embark on another round of easing by the Federal Reserve. The discussion is surrounding the small amount of growth and whether it is enough to sustain a positive direction moving forward.  The United States’ gross domestic product (GDP) went up in the second quarter by 1.7 percent, which was 0.2 percent more than a previous estimate.  The GDP is seen as a key indicator of the economy. While there was improvement, many believe it was at a level low enough to warrant more action by the Fed.

At 1:01 pm (EDT), the APMEX Precious Metals spot prices were:

• Gold, $1,660.00, Down $8.20.
• Silver, $30.86, Down $0.11.

Gold and Silver prices are mostly flat this morning ahead of the Jackson Hole Economic Symposium to be held later this week. Though European Central Bank President Mario Draghi has bowed out of the event,  all eyes are still on the Federal Reserve  and whether Chairman Ben Bernanke will announce another round of quantitative easing. Scott Anderson of Bank of the West said that the Fed has been “like a diver eyeing the pool from the edge of the diving board, but can’t seem to get themselves to move.”

The “will they or won’t they” game that the Fed has been playing in regard to quantitative easing has pushed and pulled the Gold price to highs not seen since spring. Many investors are expecting Bernanke to announce such a plan during his speech at Jackson Hole, Wyo., on Friday. However,  there is another Federal Open Market Committee meeting set for Sept 12 and 13  that may serve as the podium for the official announcement. Danske Bank analyst Christen Tuxen said, “We think that we will see a fairly dovish Bernanke on Friday and that he will commit, if not at Jackson Hole then at the September FOMC meeting, to deliver more easing to the market.”

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

• Gold, $1,667.10, Down $1.10.
• Silver, $30.93, Down $0.04.

Growing concerns that the Federal Reserve will postpone stimulus measures for the United States economy have had a direct effect on Gold, as the metal’s price dropped for the day. Referring to the Federal Reserves upcoming summit in Jackson Hole, Wyo., Frank McGhee at Integrated Brokerage Services LLC said, “The market is in a wait and watch mode ahead of the meeting. We are also witnessing some profit taking.”

Adam Posen, a Bank of England policy maker, spoke with CNBC today to share his assumption that the Federal Reserve, European Central Bank and Bank of England could announce further stimulus measures in September. Some analysts said the Fed should wait until after America’s presidential elections in November to announce another round of quantitative easing. But on the other hand, it has been suggested the economy needs a boost now and it makes no sense to wait. Posen said, “The U.S. has still got mortgages to restructure, and buying and selling securitized mortgages is the main way they can affect this. If the world is in slowdown, they should be trying to stimulate demand at home.” 

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

• Gold, $1,667.60, Down $6.50.
• Silver, $30.93, Down $0.21.

The week’s dominant financial news will be the speculation ahead of the Federal Reserve’s Jackson Hole, Wyo., symposium. Anticipation leading up to the event is leaving stocks flat.  David Morrison, senior market strategist at GFT Markets in London, said  “There are hopes that the Fed chairman will signal that another round of quantitative easing (QE) is imminent, although it seems more likely that he will keep investors guessing, while assuring them that the Federal Reserve stands ready to intervene further, if required.” 

The eurozone is in a battle of its own, regardless of what the Fed decides. Spain is being sucked into the center of the eurozone debt crisis.  Spanish consumers have pulled as much as 5 percent of their private sector deposits.  The other side of this coin is that Greek banks are seeing a boost in their deposits since June elections. Private sector deposits are up about 2 percent.

Gold is riding a three month increase in price, up 3.1 percent.  This is the highest percentage increase since January.  The rising price is fueled, in part, by expectations for what will come from the Jackson Hole meeting. Gold’s meteoric rise in price, doubling since 2008, has been fueled by the Fed’s QE tactics. For people who are risk adverse, Gold holds a strong appeal as currencies inflate, Gold will always be a store of wealth, as its value is historically independent of any one currency.

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

• Gold, $1,665.40, Down $8.70.
• Silver, $30.90, Down $0.24.

The upcoming United States presidential election in November has been a big part of the news, and the economy has been the main point of focus.  One idea has been to bring back the Gold standard that was abandoned over 40 years ago.  Simply put, the American dollar would have to be backed by actual Gold. Experts believe the idea is farfetched because the ramifications would have a negative effect on the international trade balance. It is believed this idea of going back to the Gold standard is a way to point out the major issues the economy is facing. “Examining a return to the Gold standard is one avenue to show the public and markets a level of seriousness about the U.S. dollar, monetary policy and the budget deficit,” said Jeffrey Wright, managing director of Global Hunter Securities. 

The other major economic storyline continues to be the future of the euro. While the outlook had been gloomy for the past few weeks, there are signs that conditions are improving.  The euro’s value was around a seven week high Monday, influenced by talks between Germany and France.  They are planning to work together to assist the European Union’s monetary situation.

As speculation continues to rise about the possibility of a third round of monetary easing by the United States Federal Reserve, many observers have said they don’t see the benefits of it.  The idea of pushing more cash into the system brings up the topic of more inflation and the long term effects.  “I question why the Fed would inject extraordinary stimulus on top of that. An enormous cash infusion would certainly drive up asset prices and maybe improve market and consumer sentiment, but with the S& P 500 up 11 percent this year, why do we need more help? It’s time to get back to a normal economic recovery,” said Doug Cote, chief market strategist at ING Investment Management.

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

• Gold, $1664.60, Down $6.80.
• Silver, $30.77, Up $0.06.

A Bloomberg report this morning stated the prospect that  Gold might rise to $1,800 per ounce  by year’s end, which could extend Gold’s gains for the year to more than 15 percent. This would be the greatest gain since 2010, when Gold saw a 30 percent increase. The expectation of higher Gold prices continues to be driven by speculation that many world governments including the United States and China will enact measures to stimulate their economies, which will increase Gold prices as an inflation hedge.

Although there are many  who do not expect any major announcements by Federal Reserve Chairman Ben Bernanke at this week’s meeting in Jackson Hole, Wyo., one top Fed official is speaking out in favor of more stimulus. Chicago Federal Reserve Bank President Charles Evans told reporters that the  Fed needs to launch QE3 immediately and keep buying bonds until the jobless rate goes down.  “I don’t think we should be in a mode where we are waiting to see what the next few data releases bring,” Evans told the Hong Kong Bankers Club. “We are well past the threshold for additional action we should take that action now.”

German Chancellor Angela Merkel has asked officials in her coalition to “weigh their words” when theycall for a Greece exit from the euro. Merkel said such words are very damaging at a time negotiations are in a critical phase. It is clearly her intent to keep the euro intact. She also pointed out that Greece Prime Minister Antonis Samaras is taking very serious steps to reduce debt. September is seen as a critical month for European leaders as they continue to try and get a grip on this three year old crisis.

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

• Gold, $1,670.40, Down $1.00.
• Silver, $31.01, Up $0.30.