Morning Gold & Silver Market Report – 6/24/2013
CHINESE DATA A NEGATIVE FOR GLOBAL MARKETS
Global markets were hit hard by a more than 5 percent drop in the Chinese stock market Monday. This increased fears of a liquidity crunch, so much so that Goldman Sachs became the latest to cut its Chinese growth forecasts. European markets fell prey to negative results after the Shanghai stocks melted down. Stephen Pope, managing partner at Spotlight Ideas, said, “I would suggest that almost all of the downward movement in U.S. futures...is due to the concern over the state of the Chinese economy and the implications for the rest of the world.” He continued on to say he believes we have overplayed the downside of the U.S. Federal Reserve story, but with China, “we have another excuse to trade with timidity.”
The Gold price pushed near a three year low in overnight trading as it lost nearly one percent on a stronger dollar. So far, this has been a difficult year for the Precious Metal, having lost 24 percent overall. Danske Bank analyst Christin Tuxen said, “This is a fairly quiet week, with not much in the calendar, but with the dollar and U.S. Treasuries yields stronger, we see Gold remaining under pressure." Analysts have said that the $1,300 mark is a key level to watch.
At 9:13 a.m. (EDT), the APMEX Precious Metals spot prices were:
- Gold, $1,288.50, Down $5.50.
- Silver, $19.86, Down $0.22.
- Platinum, $1,359.60, Down $11.90.
- Palladium, $668.80, Down $6.00.