Mid-Day Gold & Silver Market Report – 5/31/2013
CONSUMER SENTIMENT BOOSTS STOCKS, LOWERS GOLD
Gold is down today, setting the metal up for losses in seven of the last eight months. Today’s losses have erased gains from yesterday that saw Gold settle at its highest point in almost two weeks. Short term prospects for the metal have declined during the last few months as better-than-expected economic data and a strong rally in equities markets have temporarily eased the desire for Precious Metals. “A lot of the macroeconomic concerns that investors have had for buying Gold over the past few years are sort of dissipating,” CPM Group’s director of asset management Carlos Sanchez said. “Going down the list of economic indicators, they lean toward the more positive side, so many are stepping back from safe-haven assets like Gold,” Sanchez added.
Though the prospects of a slowdown of the U.S. Federal Reserve’s quantitative easing program have prompted recent selloffs in equities markets, the Dow Jones Industrial Average and S&P 500 are both in positive territory today after reports indicated that consumer sentiment has reached its highest level in almost six years. Though reassuring economic factors helped modestly boost stocks heading into the weekend, investors remain mindful of the stock market’s primary motivator over the last several months: the $85 billion worth of mortgage-backed securities purchased by the Fed. "All eyes remain on the U.S., analyzing every piece of data to establish if, and when, stimulus measures will be withdrawn — with every piece of bad news being actively welcomed by the market," Interactive Investor’s head of investment Rebecca O’Keeffe wrote in a note.
At 1:11 p.m. (EDT), the APMEX Precious Metals spot prices were:
- Gold, $1,396.10, Down $17.90.
- Silver, $22.35, Down $0.45.
- Platinum, $1,463.30, Down $20.90.
- Palladium, $754.00, Down $6.50.
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