Mid-Day Gold & Silver Market Report – 6/24/2013
DOLLAR, BOND YIELDS WEIGHING ON GOLD PRICE
Gold and Silver prices have continued to fall in morning trading. While the U.S. dollar is trading higher, it is not the only factor weighing on the Gold price. Eugen Weinberg of Commerzbank explained, “Alongside the firm U.S. dollar, still rising bond yields are weighing on prices, because they increase the opportunity costs of holding Gold.”
China’s recent economic problems have been well-documented, and many analysts are expecting a similar situation to America’s Lehman-style crash, though not as severe. “The perception of China is they are in the same kind of situation as the U.S., and yes it is true that a lot of loans are going to go bad, and that banks have been hiding a lot of these loans in so called trust companies,” Franklin Templeton’s Mark Mobius said. “We have to ask what the consequence is, what will happen as a result, and the scenario will be very, very different in China, simply because the banks are controlled by the government, so they will not be allowed to go bankrupt.”
At 1:11 p.m. (EDT), the APMEX Precious Metals spot prices were:
- Gold, $1,278.90, Down $15.10.
- Silver, $19.62, Down $0.46.
- Platinum, $1,331.80, Down $39.70.
- Palladium, $660.70, Down $14.10.
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