Mid-Day Gold & Silver Market Report – 7/9/2013
GOLD MOVES HIGHER, RESISTS DIP BELOW $1,200
After Gold avoided dropping through key support levels last week following positive employment reports, the metal is up for the second straight session today. Failure to fall below $1,200 an ounce on the heels of Friday’s non-farm payroll numbers has influenced a wave of short covering among Gold investors. Ahead of speculation that the Federal Reserve will imminently diminish its monetary stimulus program, many traders and investors are wondering whether Gold and Silver have reached their lowest level before they reverse their pattern and begin to trend upward. Carsten Fritsch, an analyst with Commerzbank, said Tuesday, “We are probably close to the bottom.” As the future of quantitative easing (QE) remains the focus of many investors, tomorrow’s release of last month’s Federal Open Market Committee minutes will be closely scrutinized in attempts to gain insight into the Fed’s plans for reducing the scale of QE.
Anticipation that corporate earnings data will be better than projected has lifted stocks for the fourth session in a row. “Expectations for second-quarter earnings had fallen quite a bit and we’re beginning to see that the downgrades were by too much. We could see some pleasant surprises in the earnings season,” Brian Jacobsen, chief portfolio strategist at Wells Fargo Advantage Funds, said. Along with liberal monetary policy, strong earnings numbers and gradual improvement in labor markets have influenced the bull market that stocks are currently experiencing.
At 1 p.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,250.10, Up $12.70.
- Silver, $19.30, Up $0.17.
- Platinum, $1,366.90, Up $4.90.
- Palladium, $697.10, Up $1.70.
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