PRECIOUS METALS LEVEL FOLLOWING NEW YEAR’S DIP
The Gold price has held flat today following last week’s pullback as speculators remain uncertain over the future of the Federal Reserve’s quantitative easing (QE) program. The Fed’s stimulus policy has been supportive of the Gold price since its inception in 2010 as the creation of “new money” sparks inflationary fears. The concern that QE might be halted following positive economic news in recent months is the reason for the downward pressure on the Gold price. Many physical bullion investors will take advantage of lower prices, much like central banks in the Far East. “Gold prices have gone down a lot since December and we are seeing very good physical demand from India, China and Southeast Asia,” one Singapore-based trader said.
Stocks have slid today as markets consolidate following last week’s massive rally. The jump pushed the S&P 500 to its highest closing level since December 2007. “We're seeing some very similar action to last year where expectations are low and you already have a lot of negativity out there. So any good news at all could be a potential catalyst for equities,” Ryan Detrick, senior technical strategist at Schaeffer’s Investment Research, said. Skepticism surrounding equities markets still remains among many investors. Volatility continues to keep individuals out of precarious stocks and looking to more historically stable investment vehicles such as Precious Metals.
At 1 p.m. (EST), the APMEX Precious Metals spot prices were:
- Gold, $1,647.80, Down $3.10.
- Silver, $30.05, Up $0.08.
- Platinum, $1,557.20, Down $0.30.
- Palladium, $670.00, Down $19.50.
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