Morning Gold & Silver Market Report – 6/20/2013
GOLD TUMBLES TO 2 1/2 YEAR LOWS
The Gold price fell sharply in overnight trading, spurred on by the U.S. Federal Reserve indicating they would begin tapering their monetary stimulus later this year. Losses for the Precious Metal continued during European trading, even dropping below $1,300 an ounce. Sharps Pixley director Austin Kiddle said, “Calling a bottom would be like trying to catch a knife.” He continued to say that Gold should consolidate next week and that July could possibly see a turnaround.
The Gold price wasn’t the only thing to suffer. Equity, bond and commodity markets sold off in Europe and Asia in overnight trading, taking up where the U.S. stock market left off. Japan’s Nikkei stock index fell 1.7 percent and all European markets traded at least 1 percent lower. Germany and France were hit the hardest; they are also the strongest European economies. Bank of Singapore chief economist Richard Jerram said on CNBC, “Markets are not trying to rationally judge what the real impact of a tapering of QE [quantitative easing] is likely to be.” The global fear of what will happen when the Fed begins to unwind the QE program played into yesterday’s reaction.
At 9:27 a.m. (EDT), the APMEX Precious Metals spot prices were:
- Gold, $1295.30, Down $80.80.
- Silver, $19.89, Down $1.86.
- Platinum, $1386.20, Down $39.70.
- Palladium, $663.90, Down $32.50.
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