Morning Gold & Silver Market Report – 5/28/2013
PAPER FUNDS OUTWEIGH PHYSICAL GOLD DEMAND
U.S. stock futures are on the rise as the Gold price is down in morning trading. After equities fell late last week as it became apparent the U.S. Federal Reserve would not end quantitative easing earlier than expected, Stephen Pope of Spotlight Ideas said, “We cannot rule out aggressive buying after last week’s dip because the general tenor of the U.S. economy is steady and the start to adjust the books before May month-end begins.”
A rising U.S. dollar is also adding pressure to Gold’s price. Though physical demand for Gold is still very strong, it continues to be overshadowed by exchange-traded funds, which are recording record outflows. A key resistance level for Gold is $1,400 per ounce. Saxo Bank senior manager Ole Hansen said, “We made several attempts at the $1,400 level but, especially the last three, have failed every time. The tug of war continues as the physical market is happy picking up Gold at these levels, but the paper market isn't — they are seeing bond yields up and inflation staying subdued. They're potentially worried that the [U.S.] dollar could have a bit of a renaissance.”
At 9 a.m. (EDT), the APMEX Precious Metals spot prices were:
- Gold, $1,383.00, Down $6.50.
- Silver, $22.38, Down $0.24.
- Platinum, $1,452.50, Down $0.90.
- Palladium, $735.50, Up $7.00.