RETAIL SALES STIFLE GOLD RALLY
Gold is down slightly today off pressure from strong U.S. retail sales reports. Positive economic news coupled with Gold’s inability to breach $1,600 has kept some investors sidelined as the appetite for riskier assets is temporarily in vogue. However, many analysts predict the buildup of Gold reserves by central banks and the drop in the dollar’s share of total reserves (from 62 percent to 54 percent) are strong bullish indicators for the long term future of the metal. “Gold has a deep and liquid market with no credit risk, making it one of the most attractive assets for central banks to consider as they diversify away from the U.S. dollar and euro,” the World Gold Council’s Government Affairs Manager Ashish Bhatia said.
February’s retail sales report showed sales made the biggest jump in five months. “The retail number was nice and that’s helping lessen concern that high gas prices and taxes would combine to slow down consumer spending,” Erick Maronak, chief investment officer at Victory Capital Management Inc., said. As equities markets have rallied and Precious Metals have inversely fallen, many experts are touting this as an excellent time to buy Gold and Silver. Government stimulus by the U.S. Federal Reserve is not expected to cease any time soon, which is projected to have a long term positive influence on Gold. However, Frank Lesh, a trader at FuturePath Trading in Chicago said, “The better than expected retail sales report and the strength in the dollar are holding Gold back. There’s still fear out there in general, and people are also watching to see what the Fed will do when it meets.”
At 4:00 pm (EDT), the APMEX precious metals spot prices were:
- Gold, $1588.50, Down $5.40.
- Silver, $28.96, Down $0.28.
- Platinum, $1592.10, Down $4.90.
- Palladium, $770.50, Down $4.00.
APMEX’s Account Managers now have extended hours Mondays through Thursdays and are here to serve you until 7 p.m. (CDT)! Or call us Fridays until 5 p.m. (CDT)! 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.