Mid-Day Gold & Silver Market Report – 6/26/2013
FED FEARS CONTINUE TO PUT PRESSURE ON PRECIOUS METALS
Precious Metals are continuing to struggle today with Tuesday’s U.S. consumer confidence report being at its highest level in nearly five years. Further optimistic U.S. data has been seen more recently with elevated orders for durable goods and the largest housing prices rise in nearly seven years. These factors indicate the U.S. economy is recovering, putting the Federal Reserve on the verge of tapering monetary easing for the country and creating pressure for Gold. “If you look at yields, they are going higher, and people are more bullish on the dollar - all of this creates a difficult environment for Gold,” UBS analyst Joni Teves said.
The U.S. dollar is continuing to appreciate with positive economic data; however, Adam Cole at RBC Capital Markets believes that if we see a series of poor economic data, it could easily postpone the Fed’s tapering of its bond buying program. Commenting on how any type of change with economic data could affect the U.S. dollar, Cole said, “It won’t be a straight-line dollar appreciation from here.”
At 1:10 p.m. (EDT), the APMEX Precious Metals spot prices were:
- Gold, $1233.20, Down $43.80.
- Silver, $18.81, Down $0.84.
- Platinum, $1306.00, Down $46.50.
- Palladium, $634.50, Down $34.30.
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