Mid-Day Gold & Silver Market Report – 7/5/2013
STOCKS HOLD ON TO GAINS; GOLD SUFFERS
Stocks have wavered some but are staying positive today on a strong jobs report. Investors can expect continued volatility today with fewer participants in the trading session, which would help even things out. It seems that investors may have decided that the most recent jobs report is not a “Goldilocks” report, a term financial analysts have begun using for reports that are just good enough to point to continued economic recovery, but not so good that the Fed will wind down the QE program too soon. Quincy Krosby, market strategist for Prudential Financial, said, “It’s obvious that Treasury traders believe this is enough for the Fed to begin to taper.” The consensus is that tapering will happen sometime between September and December.
The news for the Gold price is sounding like a broken record this afternoon. Positive data had the anticipated inverse reaction on the Gold price, pushing the Precious Metal down about three percent today. Natixis analyst Nic Brown summarized the current sentiment well when he said, “After the strong U.S. numbers we are approaching the point in which the Fed will start to taper and as a consequence we fully expect that, if the U.S. economy continues to improve, you will see a further strengthening of the dollar, which is negative for the dollar-denominated Gold price."
At 1 p.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,216.30, Down $37.60.
- Silver, $18.86, Down $0.93.
- Platinum, $1,324.30, Down $22.50.
- Palladium, $678.90, Down $6.90.
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