Morning Gold & Silver Market Report – 6/10/2013
STOCKS START STRONG; GOLD EASES
The U.S. stock market gained in overnight trading on positive news from Japanese markets as stocks there rallied. Investors seem to be overlooking weaker data coming out of China, which indicates the world’s second largest economy is stuck in stagnant growth, and instead are looking ahead to a speech from St. Louis Federal Reserve President James Bullard. Bullard’s speech is the last scheduled before the Fed’s interest-rate decision in June. Due the rest of this week is a smattering of data including retail sales where investors will be looking for the effects of sequestration and higher taxes.
The Gold price eased again on Monday, but do to Silver’s continued underperformance, the two metals hit their highest Gold/Silver ratio since August 2010. A stronger dollar is one of the key factors for Gold’s continued decline. The Federal Reserve’s loose monetary policy has been a key driver for Gold’s previous success, and with anticipation of that policy coming to an end soon, the Gold price has been struggling for support. Interestingly, outflows from the world’s largest ETF New York’s SPDR Gold Trust slowed. The fund reported an outflow of only 6 tons last week as compared to an average of 24 tons a week over the previous two months.
At 9:10 a.m. (EDT), the APMEX Precious Metals spot prices were:
- Gold, $1,382.80, Down $2.20.
- Silver, $21.84, Down $0.01.
- Platinum, $1,502.10, Down $2.00.
- Palladium, $761.20, Up $0.00.