INVESTORS RUSHING BACK TO GOLD AS SAFE HAVEN ASSET
Gold is on the rise and is taking back its stance as a safe haven asset this morning against the euro as nervous investors react to the Italian election. “(The) Italian elections have been the first of the 2013 scheduled event risks to blow a hole in risk appetite. That the anti-establishment 5 Star movement was the party to win the single largest share of the vote proves a sharp reminder to Brussels that fiscal austerity can potentially be undone with a popular vote,” Dutch bank ING said in a note. Federal Reserve Chairman Ben Bernanke will begin his two day congressional testimony today at 10 a.m. Eastern, in which many are expecting him to announce the Feds plans on future fiscal policy for the U.S. “Gold) seems to have rekindled its safe haven qualities a bit here,” Saxo Bank vice president Ole Hansen said. “But whether it will last for long probably depends on Bernanke this afternoon.”
Platinum fell below the price of Gold for the first time in over a month following concerns that the South African supply could be disrupted. The metal was overextended as it hit a 17 month high this month. “Anything to do with the South African mining industry” can affect prices, Marc Ground, a commodity strategist at Standard Bank Plc in Johannesburg, said today. “The market is a bit nervous. Because the Platinum market is so overstretched, it doesn’t take much for people to start selling.”
At 9:15 a.m. (EST), the APMEX Precious Metals spot prices were:
- Gold, $1,597.90, Up $9.80.
- Silver, $28.98, Down $0.08.
- Platinum, $1,612.30, Down $9.40.
- Palladium, $740.20, Down $10.30.
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