Closing Gold & Silver Market Report – 7/22/2013
GOLD JUMPS WITH WEAK DOLLAR; U.S. HOUSING BUBBLE MAY BE NEAR
Gold is on the rise today after a weaker U.S. dollar caused investors to become concerned on whether the Federal Reserve will or won’t continue with its fiscal policy. The market is beginning to react after last week’s uncertain announcement from Fed Chairman Ben Bernanke about the bond buying program’s future. “We are seeing some support for Gold as Bernanke’s statements tell us that the Fed wants to see a visible improvement in economic conditions before they begin tapering, “ Michael Cuggino, who manages $12 billion of assets at Permanent Portfolio Family of Funds Inc. in San Francisco, said. “The longer-term reasons for owning Gold, like capital preservation, remain as easy money will continue to flow into the system.”
The housing market has become one of the U.S. Federal Reserve’s newest concerns in desperate need to be corrected before monetary policy is cut back. Previous housing market reports reflected positive data, and it was presumed to be on track for a healthy recovery, but current figures are creating an alarm for analysts that we may be headed back toward a housing bubble. “I wouldn't say that we have bubbles today. But if prices keep rising at these rates, pretty soon you will be in a bubble territory,” Dean Baker, co-director of the Center for Economic and Policy Research, a Washington think tank, said. “Generally, you don’t see situations with rapidly rising prices and they just stop.”
At 5:05 p.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,337.50, Up $41.60.
- Silver, $20.59, Up $1.04.
- Platinum, $1,445.80, Up $14.60.
- Palladium, $748.30, Down $2.50.
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.