Mid-Day Gold & Silver Market Report – 5/17/2013
GOLD CONTINUES SLIDE DESPITE LONG-TERM BULLISH FACTORS
The Gold price continues to trend downward as the metal is poised for its longest consecutive session losing streak in four years. The central motivator influencing Gold’s decline is the continued speculation surrounding a potential reduction of quantitative easing (QE) and a rising dollar that has nearly reached a three-year high. Coupled with renewed investor optimism regarding the current bullish direction of U.S. stocks, Gold is experiencing a harsh short-term move.
Though Gold bugs are wincing as they realize consecutive sessions of losses, many remain positive as several factors point to a bullish long-term outlook for the yellow metal. The stock market rally that has seen the Dow Jones and S&P 500 reach record levels is thought to be overinflated by many analysts and is not supported by macroeconomic fundamentals. Fear of central bank sell-offs of Gold holdings have subsided since the initial panic triggered by rumors of Cyprus liquidating a portion of its reserves to fund a potential bailout. The future prospect of Gold demand in India and the current physical buying frenzy among retail investors worldwide indicate good news for long-term Precious Metals investors.
At 1:18 p.m. (EDT), the APMEX Precious Metals spot prices were:
- Gold, $1,368.60, Down $21.30.
- Silver, $22.48, Down $0.29.
- Platinum, $1,468.60, Down $18.50.
- Palladium, $742.30, Down $0.50.
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