Morning Gold & Silver Market Report – 5/29/2013
STRONG DATA HINTS AT QE END
U.S. and European markets are experiencing losses today as investors consider data released yesterday that hinted the U.S. Federal Reserve may look to end its monetary easing program. Consumer confidence data was released Tuesday with numbers higher than they have been in five years. Housing market numbers are also on the rise and came in stronger than expected. However, the Organization for Economic Cooperation and Development warned that government bond yields could spike as central banks begin to retreat from their current monetary easing.
The Gold price is up this morning, primarily on strong physical buying from China. Lower prices in Asia are luring in physical buyers to the point that dealers are having a difficult time meeting the increased demand. Gold is still struggling to break the $1,400 mark as outflows from exchange traded funds continue. There are predictions for future price drops due to the actions the Fed might take to reduce monetary easing.
At 9 a.m. (EDT), the APMEX Precious Metals spot prices were:
- Gold, $1,388.00, Up $7.10.
- Silver, $22.37, Up $0.09.
- Platinum, $1,456.80, Down $6.50.
- Palladium, $750.30, Down $9.30.