Mid-Day Gold & Silver Market Report – 5/16/2013
GOLD CONTINUES TO STRUGGLE EVEN AS DOLLAR SLIPS
Rebounding slightly from early morning losses, Gold is still down on Thursday despite weak U.S. housing and employment data. The Gold price has continued to decline as rumors of a reduction in the volume of monthly asset purchases by the U.S. Federal Reserve has been positive for the global status of the U.S. dollar. “Any signs of a tapering in quantitative easing by the Fed is able to have profound impact on market psychology and pricing,” Stephen Gallo, European head of FX strategy at BMO Financial Group, said. Though the perpetuation of quantitative easing measures was expected to weigh heavily on the strength of U.S. currency, it remains evident that the dollar is faring well when compared to other leading global currencies. Aggressive monetary stimulus in Japan as well as persistent troubles in the eurozone have boosted the dollar’s standing and inversely put pressure on the desirability of Gold and other Precious Metals.
Stocks wavered this morning following negative economic reports a day after the S&P 500’s record finish on Wednesday. “Today’s disappointing economic reports will set the tone,” Chad Morganlander, fund manager at Stifel Nicolaus & Co, said. “The U.S. economy is still struggling with lackluster growth and the recovery is far from self-sustaining, so equity markets are looking for guidance from central banks for their liquidity high.” Investors will continue to speculate how long equities can sustain their rally as relatively positive employment and corporate earnings data, along with the Fed’s monetary easing measures, have been strong motivators in boosting stocks.
At 1:07 p.m. (EDT), the APMEX Precious Metals spot prices were:
- Gold, $1,386.20, Down $13.00.
- Silver, $22.73, Down $0.04.
- Platinum, $1,485.30, Down $6.90.
- Palladium, $743.40, Up $12.30.
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