Closing Gold & Silver Market Report – 07/01/2013
GOLD PRODUCTION COULD SLOW
After a second quarter slide that saw Gold fall more than 23 percent, the yellow metal has started July with strong gains. Following the recent decline that sent Gold through many key technical levels, today’s price jump is due to a drove of backfill orders by bargain hunting investors. Along with discussion that the U.S. Federal Reserve will begin tapering quantitative easing, the “strengthening of the [U.S. dollar], unwinding of the global carry trade and tame global inflation” have all amalgamated to drive Precious Metals prices down the last couple months. However, with prices being so low, Gold producers are second guessing the profitability of their endeavors. The world’s second largest Gold miner, Barrick Gold Corp, recently postponed the launch of a South American mine by two years. Experts predict many other producers will suspend production unless the Gold price can rebound enough to once again make manufacturing lucrative.
Economic factors helped stocks rise Monday, as reports showed domestic manufacturing and construction spending edge higher for June. The data comes just ahead of quarterly corporate earnings reports, which will most likely begin funneling in following the July 4 holiday. Continued positive data on the economic front could exacerbate sentiment among Fed officials pushing for the early reduction of monetary easing measures that have been so critical in driving stock and Precious Metals markets.
At 5:10 p.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,254.00, Up $28.30.
- Silver, $19.10, Up $0.13.
- Platinum, $1,376.30, Up $36.40.
- Palladium, $685.50, Up $24.90.
APMEX’s Account Managers now have extended hours Mondays through Thursdays and are here to serve you until 7 p.m. (CDT)! Or call us Fridays until 5 p.m. (CDT)! If you have any questions about investing in precious metals or simply would prefer to place your order by telephone, we are here to help.