Mid-Day Gold & Silver Market Report – 6/11/2013
PRESSURE ON GOLD PRICE CONTINUES
The Gold price continues to fall into the day as the effects of the Bank of Japan’s announcement that they will not extend their stimulus is felt. The BoJ’s decision may be the beginning of the end of the era of loose monetary policy. Gold has already suffered by talk coming out of the U.S. Federal Reserve as they consider when to end their monetary easing program. Marex Spectron's head of Precious Metals David Govett said, “The view is now that the Fed will taper quantitative easing. If that happens, it's negative for Gold. A lot of the rally Gold has had in the last three years has been down to QE.”
U.S. stocks are lower in afternoon trading as investors watch international data in the wake of BoJ’s announcement. Art Hogan, Market strategist at Lazard Capital Markets, said, “Today is going to be a truly global marketplace, because the Bank of Japan didn’t have more to say about the volatility in their bond markets.” Investment specialist Richard Slinn at J.P. Morgan Private Bank in San Francisco added, “It does feel like in the last couple of weeks, news has been affecting all markets, not just regional.”
At 1 p.m. (EDT), the APMEX Precious Metals spot prices were:
- Gold, $1,378.30, Down $9.70.
- Silver, $21.77, Down $0.27.
- Platinum, $1,483.60, Down $24.80.
- Palladium, $752.90, Up $16.50.
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