Morning Gold & Silver Market Report, 7/13/2012
GOLD REBOUNDS; EURO STRENGTHENS DESPITE DOWNGRADE FOR ITALY
Precious Metals prices were rebounding from recent losses this morning, as is the American stock market. Gold, in particular, has rebounded enough this morning to make up for this week’s losses. As has been the case recently, currency trade is supporting this move. The euro has steadied against the dollar as investors are ready for higher risk assets. Chinese growth data was seen as a bit of good news. Peter Fertig of Quantitative Commodity Research said Gold has been trading lower this week because “the Fed (isn’t expected) to embark on quantitative easing within this quarter, unless there is a sharp deteriorating of the economic situation in the United States.”
The euro has steadied even in the wake of another sovereign debt rating downgrade for Italy, this time coming from Moody’s. Italian bond yields fell after the downgrade, however, which is seen as positive news in a negative situation. In a statement, Moody’s wrote, “The negative outlook reflects our view that risks to implementing these reforms remain substantial. Adding to them is the deteriorating macroeconomic environment, which increases austerity and reform fatigue among the population.”
At 9 a.m. (EDT), the APMEX Precious Metals spot prices were:
- Gold, $1,583.50, Up $16.70.
- Silver, $27.27, Up $0.03.
- Platinum, $1,425.50, Up $13.00.
- Palladium, $583.30, Up $7.50.
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