Closing Gold & Silver Market Report – 6/5/2013
POOR JOBS REPORT LIFTS GOLD; INDIA DISCOURAGED FROM INVESTING IN GOLD
Precious Metals received a boost today after the U.S. jobs report reflected worse than expected data for the month of May. Analysts are highly anticipating Friday’s release of the monthly non-farm payrolls report to get a better sense of which direction the U.S. economy may be heading. There is concern within the market that the U.S. Federal Reserve may cut back its quantitative easing measures, however with a pessimistic view of the economy that concern may be out the window. “As the unemployment rate has been explicitly tied into quantitative easing, there has been a direct correlation between the non-farm payrolls and what happens to the Gold price,” Mitsubishi analyst Jonathan Butler said.
Yesterday, India's Reserve Bank released some alarming news regarding their restrictions on Gold purchases by the country’s citizens. When the large sell-off in Gold occurred most recently, the worldwide demand for physical forms of the yellow metal increased to levels not seen in quite a while, with India first in line to acquire the asset. India has a cultural relationship with Gold, which plays an important role in weddings and other events such as festivals. “Various comments from officials hint at the potential for more measures to come, as the government is taking a hard line trying to curb the country's appetite for Gold,” UBS said in a note. “This poses a risk for Indian Gold demand up ahead should more and more restrictions be implemented.”
At 5:01 p.m. (EDT), the APMEX Precious Metals spot prices were:
- Gold, $1404.50, Up $5.30.
- Silver, $22.61, Up $0.10.
- Platinum, $1514.10, Up $21.50.
- Palladium, $759.80, Up $8.70.
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