Morning Gold & Silver Market Report – 5/16/2013
GOLD PRICE MAY TEST APRIL LOWS
The Gold price is falling for the sixth straight session and is reaching lows not seen since April. A strong U.S. dollar and weak investor sentiment for the Precious Metal are the likely reasons for the recent price drops. The continued stock rally has also led funds to liquidate their Gold positions. Traders said that once Gold fell below the psychologically significant $1,400 level heavy selling was triggered. Mitsubishi analyst Jonathan Butler said, “It is possible that we will see further selling. This fall is reminiscent of what we saw about a month ago during a sort of flash crash in Gold.”
It isn’t a secret that demand for physical Precious Metals has increased as the price has continued to stay low. The World Gold Council reported Thursday that investors didn’t buy enough physical Gold to offset outflows from Gold backed exchanged traded funds (ETF). Jason Toussaint, chief executive officer of World Gold Trust Services, the sponsor of the SPDR Gold Trust, said that the outflows from ETFs were due to speculative investors taking profits. As the Gold price fell, other metal prices followed suit; the Silver price fell 2.5 percent in overnight trading.
At 9:16 a.m. (EDT), the APMEX Precious Metals spot prices were:
- Gold, $1,380.90, Down $18.30.
- Silver, $22.53, Down $0.24.
- Platinum, $1,478.50, Down $13.70.
- Palladium, $731.00, Down $0.10.
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