Morning Gold & Silver Market Report – 6/21/2013
GOLD BEGINS LONG ROAD TO RECOVERY
The Gold price is slowly rising this morning as it attempts to recover some of yesterday’s losses. One factor contributing to the severity of the price drop was news that CME Group Inc. was raising margin requirements for the metal at the end of the week. This caused many traders to liquidate their positions. GFT Markets technical analyst Fawad Razaqzada said, “The next stop [for Gold] is probably $1,275/85 [based on technical indicators]. Beyond this area, there is nothing significant until $1,200. On the upside, $1,350 is likely to turn into resistance, having provided support before.”
The U.S. Federal Reserve’s signal yesterday that it could start tapering its quantitative easing program by the end of the year caused stocks around the globe to fall as well. One stock trader said, “Even defensive sectors are getting smoked. The super broad-based sell off between commodities, bonds, equities — I wouldn't say it's panic, but we've seen aggressive selling on the lows.” The panic is one reason St. Louis Fed President James Bullard defended his dissenting vote from the Fed’s policy statement. Bullard believes the Fed should have waited for “more tangible signs” of a better economy, and was concerned that the U.S. Central Bank was following the calendar more than the data.
At 9 a.m. (EDT), the APMEX Precious Metals spot prices were:
- Gold, $1,294.90, Up $6.70.
- Silver, $19.98, Up $0.04.
- Platinum, $1,365.30, Down $0.50.
- Palladium, $674.10, Up $9.10.
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