The president of the Federal Reserve Bank of Richmond said Tuesday that he is not expecting an acceleration in the US economy in the near future but instead for growth to continue at its current modest pace, the Charlotte Observer reported.
Consumers are likely to remain cautious about spending; productivity growth is expected to remain low, and the housing market will likely remain dampened – all of which are expected to hold back economic growth in the near term, said Jeffrey Lacker, who gave an economic forecast during a Rotary Club of Charlotte meeting. His comments were good news for traditional investment hedging metals such as silver and gold.
Lacker said he expects economic growth to continue at the rate it’s been at since the recession.
“While the acceleration that many have been forecasting for right around the corner would be welcome, that scenario seems less likely,” he said.
US gold bullion gained 0.4 percent to finish at $1,320 per ounce. US silver prices inched up 0.5 percent to $21.05 per ounce. Indian silver had the largest decline on Tuesday, July 8, dropping 2.3 percent and landing at INR 44,792 ($747.18) per kilogram. Chinese silver finished the day down 0.1 percent to CNY 4,300 ($693.04) per kilogram. Japanese silver saw little change in its price on Tuesday at JPY 687.00 ($6.75) per 10 grams.
The price of Indian gold bullion held steady at INR 27,598 ($460.36) per 10 grams. After dropping for two days, the price of Chinese gold bullion flattened at CNY 262.58 ($42.32). Japanese gold bullion held its value on Tuesday at JPY 4,307 ($42.30) per gram.
At $1,491, the price of US platinum bar finished the market day up 0.3 percent per ounce. The price of Chinese platinum bar fell 0.3 percent to CNY 317.00 ($51.09) per gram. Japanese platinum bar stayed flat at around JPY 4,915 ($48.27) per gram.
After a 0.5 percent increase, Chinese palladium bar finished the day at CNY 193.00 ($31.11) per gram. US palladium bar finished the day up 0.3 percent to $865.00 per ounce. The price of Japanese palladium bar remained essentially flat at JPY 2,860 ($28.09) per gram.