Morning Gold & Silver Market Report – 6/13/2013
GOLD PLAYS THE WAITING GAME
The Gold market, along with most other financial markets, is waiting on news from the U.S. Federal Reserve next week regarding their stimulus program. “The sentiment is still very divided over whether the Fed will taper or not,” Joyce Liu, an investment analyst at Phillip Futures in Singapore, said. “Due to the lack of major market-moving events, people are just trading on technicals until some senior Fed officials say something before the FOMC meeting next week,” she said, referring to the Federal Open Market Committee. There is one major item of interest in the Gold market today. China has been on a three-day holiday that ended today, and since they are the second largest buyers of Gold in the world, the global demand should pick up.
There is growing concern among investors around the world regarding uncertainty of the economic outlook. “The storm clouds are building: the [Dow Jones Industrial Average] has just suffered its first three-day losing streak for the year, the Chicago VIX [volatility] index has climbed further; Europe is sliding off its highs; China is slowing down faster than expected, and the BOJ [Bank of Japan] is holding the line on additional stimulus action,” wrote Evan Lucas, market strategist at trading firm IG Markets. The global stimulus programs have been unprecedented and the idea of closing those programs has brought more questions than answers to the discussion. “We've been living in an environment where economically speaking, bad news was good news because bad news meant more monetary stimulus. The rally that we have had over the past one-and-a-half years has been mainly driven by central banks and now the punch bowl is about to be taken away,” Hans Goetti, chief investment officer Asia at wealth management firm Finaport, said.
At 9 a.m. (EDT), the APMEX Precious Metals spot prices were:
- Gold, $1380.60, Down $13.40.
- Silver, $21.84, Down $0.08.
- Platinum, $1460.40, Down $23.40.
- Palladium, $743.00, Down $14.10.
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