Closing Gold & Silver Market Report – 1/4/2010
At 4PM (CT) the APMEX precious metal prices were:
- Gold price - $1,383.00
- Silver price - $29.85
- Platinum price - $1,761.40
- Palladium price - $780.00
COMMENTARY: Precious metals prices went through (as some would say) a much needed correction today. December was a month of sharp increases so giving some back is not necessarily a bad thing. Investors showed an appetite for risk, so the equity market has been popular for two days in a row now. We would point out that there has been no significant financial news to drive the stock market up, just an enthusiastic optimism for the new year. There was also no news that can be credited with driving precious metal prices down. Emotion seems to be the key ingredient because there is no obvious catalyst for the “pop” in stocks or the “drop” in precious metals.
Gold has advanced 30% in the year 2010 and this was the first meaningful selloff in several weeks, says Charles Nedoss, a senior market strategist at Olympus Futures in Chicago. He also said, “We’re seeing [investors] shaking the money tree. The longer-term [upward] trend for gold is still intact. This is just a blip.” When prices go up quickly as they did yesterday, investors tend to sell off what they own in efforts to rebalance their assets due to the expert’s recommendations of keeping precious metals just 4-14% of your investable assets. Sometimes this means selling your metals to compensate for the sharp gains.