Closing Gold & Silver Market Report – 5/23/2013
GLOBAL STOCK, DOLLAR WEAKNESS DRIVE GOLD UP
Lower global stock prices and weakness in the U.S. dollar pushed Gold higher today, continuing the metal’s recent streak of volatile price action. Widespread selloffs, subsequent short covering and speculation surrounding the future of quantitative easing (QE) have been the main contributors to Gold’s instability. Weighing in on today’s price hike, Commerzbank analyst Carsten Fritsch said, “It’s the combination of a weaker U.S. dollar and falling stock markets that pushes up Gold. This is not surprising as the firmer U.S. dollar and rising stock markets pushed Gold down before.”
Reports of manufacturing contraction in China prompted a harsh decline in stock prices throughout Asian markets following months of evidence that industrial output has been slowing. This news along with investor concern about QE drove U.S. stocks lower as well. "The market is still digesting [U.S. Federal Reserve Chairman Ben] Bernanke's comments, which took everybody by surprise... but today [St. Louis Fed President James] Bullard went a little bit in the other direction saying that tightening wouldn't come that quickly and I think that is lending support," Danske Bank analyst Christin Tuxen said. Investors, analysts and economists alike are now squarely focused on the September 17-18 Federal Open Market Committee meeting as the potential date to announce the perpetuation or tapering of monetary stimulus.
At 5 p.m. (EDT), the APMEX Precious Metals spot prices were:
- Gold, $1,392.50, Up $22.10.
- Silver, $22.66, Up $0.08.
- Platinum, $1,461.50, Down $9.20.
- Palladium, $738.50, Down $15.70.
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