Closing Gold & Silver Market Report – 6/4/2013
LOWER GOLD COST DRAWS IN BUYERS
Gold ended the day down in afternoon trading, pushed there by heavy selling pressure. According to the World Gold Council (WGC), demand for Gold is down about thirteen percent in the first quarter of this year compared to last year. However, that is mostly influenced by the large sell-off of electronically traded funds during that time. It is a totally different story with Gold coins and bars, which are up 10 percent based on a five year average. “The steady level of buying confirmed that central banks and institutions continue to favor Gold’s diversification benefits, as they reduce their portfolio allocations to U.S. dollars and euro,” the WGC states. “Again during the first quarter, the central banks adding to their Gold reserves were distributed widely around the globe, with volumes concentrated in emerging markets.”
The U.S. jobs report will be released Friday, and many believe it will be a strong indication of what the next move by the U.S. Federal Reserve will be. All the talk has been about whether the Fed would end its aggressive monetary easing program, and the jobs report could shed light on the subject. While the Fed has backed its policy saying it has helped the economy, one investment officer thinks not. Bill Gross, founder of bond giant Pimco, said toward Fed Chairman Ben Bernanke, “Well it's been five years Mr. Chairman and the real economy has not once over a 12-month period of time grown faster than 2.5%. Perhaps, in addition to a fiscally confused Washington, it's your policies that may be now part of the problem rather than the solution."
At 5 p.m. (EDT), the APMEX Precious Metals spot prices were:
- Gold, $1400.90, Down $13.00.
- Silver, $22.59, Down $0.24.
- Platinum, $1493.20, Down $5.70.
- Palladium, $751.40, Down $7.70.
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