GOLD FOLLOWS STOCK MARKET DOWN ON PERPETUAL ECONOMIC CONCERNS
Pervasive concern over Europe’s debt crisis and U.S. budget troubles have pushed equity markets lower for the seventh day, dragging down Precious Metals prices as well. “The fall to session lows in Gold is driven by equities,” Peter Fertig, a consultant with Quantitative Commodity Research, said. Historically, Gold and equities markets have carried an inverse relationship. However, Nic Brown, an analyst with Natixis, commented on the similar pattern Gold and equities are currently following by saying, "You get periods of high correlation between risky assets, and this seems to be happening now.”
Despite reports from the World Gold Council that demand for physical Gold is down this year compared with 2011, financial specialists remain bullish on the outlook for Precious Metals as domestic and global economic concerns continue to plague investors. “Investors are clearly worried about the looming fiscal cliff and are appropriately increasing their bullish positions in Precious Metals,” GFT Markets technical analyst Fawad Razaqzada said. Other analysts weighed in by adding, “A lack of progress in resolving the ‘fiscal cliff’ issue would be Gold-friendly…The path of least resistance appears higher for bullion.”
At 1 p.m. (EST), the APMEX Precious Metals spot prices were:
- Gold, $1,715.00, Down $17.10.
- Silver, $32.57, Down $0.38.
- Platinum, $1,570.00, Down $21.60.
- Palladium, $635.90, Down $6.70.
APMEX’s Account Managers now have extended hours Mondays through Thursdays and are here to serve you until 8 p.m. (EST)! Or call us Fridays until 6 p.m. (EST)! If you have any questions about investing in Precious Metals or simply would prefer to place your order by telephone, we are here to help.