Morning Gold & Silver Market Report – 6/28/2013
TAPERING AS EARLY AS SEPTEMBER; GOLD MINES CLOSE
The Gold price fell, and stock markets reversed course into the negative after comments from a Federal Reserve official. Fed Gov. Jeremy Stein suggested that the central bank could begin tapering as early as September. “The best approach is for the [Fed] to be clear that in making a decision in, say, September, it will give primary weight to the large stock of news that has accumulated since the inception of the program and will not be unduly influenced by whatever data releases arrive in the few weeks before the meeting,” Stein said.
The Gold price is hovering around a very important level with regards to production cost. Reports have surfaced that many Gold mines have closed because it is simply too expensive to mine the metal compared to the current prices. Andrew Su of Compass Global Markets said, “This fall in the price of Gold is not truly based on supply and demand - It's based on expectations of what the Federal Reserve is doing. I think that somewhere along the line the Gold prices will simply start rising, because production will reduce supply significantly.”
At 9 a.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,195.50, Down $18.10.
- Silver, $18.63, Down $0.02.
- Platinum, $1,317.80, Down $9.40.
- Palladium, $644.70, Down $6.00.
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