Mid-Day Gold & Silver Market Report – 7/30/2013
GOLD REGAINS GROUND ON WEAK CONSUMER CONFIDENCE
The Gold price has recovered from early morning losses as waning consumer confidence reports for July helped challenge certain expectations for the future of U.S. monetary policy. Investors will be intently scrutinizing the outcome of stimulus discussions at this week’s Federal Open Market Committee (FOMC) meeting to gain perspective on structuring their portfolios. Anticipating this meeting, Gold investors increased their net long positions, driving the metal to a third consecutive week of gains. As the U.S. continues to eye every utterance from Fed officials concerning quantitative easing, eastern nations, who have historically had a greater appetite for Gold, persist in their desire for the yellow metal. “Gold premiums continue to rise in both China and India, indicating the physical Gold demand pressure,” GoldForecaster.com contributor Julian Phillips said.
As the majority of corporate earnings results have been adequate, investors look to the outcome of this week’s Fed meeting for market indicators headed into August. “A pickup in second-half earnings will be crucial to move further from here on. Markets will be sensitive to economic announcements again this week and particularly to what the Fed has to say,” Ashburton Ltd. investment manager Veronika Pechlaner said. With the S&P 500 realizing its largest single month gain (5.2 percent) since October 2011, many analysts ponder the impact that a reduction in monetary easing will have on the benchmark index.
At 1 p.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,325.50, Down $6.10.
- Silver, $19.79, Down $0.16.
- Platinum, $1,438.60, Down $5.10.
- Palladium, $730.70, Down $15.40.