Closing Gold & Silver Market Report – 6/26/2013
MOMENTUM FOR GOLD SELL-OFF BUILDS DESPITE NEGATIVE GDP REVISION
Gold futures have fallen once again to new multiyear lows as the persistent fear of a reduction in the scale of quantitative easing continues to diminish the appeal of Precious Metals. The 23 percent decline in Gold price this quarter has many investors spooked, causing a sustained onslaught of panic selling in electronic markets. “A combination of dollar strength, economic progress and a re-rating to the market’s expectations of central-bank asset purchases are crushing prices,” SpreadEx financial trader David White said. Though Wall Street powerhouses Goldman Sachs and Credit Suisse have downgraded their short term projections for Gold, some experts still tout exposure to Precious Metals in any investment portfolio as an excellent hedge against inflation and geopolitical turmoil. Though the possible slowing of asset purchases has forced Gold and Silver lower, the volume of “new money” flowing into markets is expected to have long-term economic significance in propelling metals prices toward former highs.
Though short term investor sentiment has shifted toward riskier assets, the U.S. government has revised its first quarter growth reports with GDP numbers falling well short of earlier former predictions. Though we are well into the second quarter of 2013, some economists perceive the data as a possible deterrent to decreasing the current level of monetary stimulus. Though government and home construction show solid figures, every other major category was lower than expected.
At 5 p.m. (EDT), the APMEX Precious Metals spot prices were:
- Gold, $1227.60, Down $49.50.
- Silver, $18.58, Down $1.07.
- Platinum, $1305.30, Down $47.20.
- Palladium, $631.80, Down $37.00.
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