Mid-Day Gold & Silver Market Report – 7/8/2013
DEUTSCHE BANK: GOLD’S CORRECTION OVER?
Precious Metals have mostly added to gains in morning trading, and strategists at Deutsche Bank believe that the correction could be finished. With the caveat that Federal Reserve policy decisions could still hamper Gold’s recovery, the statement read, “It is possible that the major part of the Gold price correction has already occurred.” To date, the Gold price has fallen approximately 30 percent from its record high in September 2011.
Some analysts are concerned that rising bond yields could soon impact the U.S. economy. Frederic Neumann of HSBC Bank said, “I think 3 percent is the key threshold, but if you’d asked me a few weeks ago, I would have said 2.5 percent – it keeps moving higher and yet there doesn’t seem to be an imminent impact on the U.S. economy. But 3 percent is likely to be, not just a material threshold, but a psychological line in the sand for [Fed Chairman Ben] Bernanke at the moment.” The thought is that if yields reach that level, Bernanke would be forced to rethink the plan to taper the current round of quantitative easing.
At 1:43 p.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,237.50, Up $22.30.
- Silver, $19.14, Up $0.31.
- Platinum, $1,360.10, Up $33.70.
- Palladium, $695.60, Up $18.10.
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