Closing Gold & Silver Market Report – 7/30/2013
QUIET DAY FOR EQUITIES, GOLD
Wednesday is setting itself up as a big news day with the release of the second-quarter gross domestic product (GDP) report and the ever-important meeting of the U.S. Federal Reserve. The economy is measured by the GDP and a decline down to 1 percent is expected. In the first quarter of 2013, the economy grew to 1.8 percent; the country’s long term average is 3.2 percent. In short, the economy is growing, just not as fast as the current administration would like. The report can sometimes be at odds with other market indicators, such as the jobs report. In addition, the Labor Department will periodically change the way the GDP is measured. Richard Moody, chief economist at Regions Financial Corp, said, “We look for growth over recent quarters to be revised higher — the data on employment and income have been at odds with the GDP data so something has to give, and our money is on an upward revision to GDP growth over recent quarters.”
The Gold price retreated slightly as today was a low volume trading day. On days like this, many investors sit on the sidelines and wait for news, such as the Fed’s policy statement, before making a move. Much of Gold’s pricing is affected by the Federal Reserve. Jeffrey Sica, chief investment officer at Sica Wealth, summarized it by saying, “If [U.S. Federal Reserve Chairman Ben] Bernanke comes out and specifically indicates that there is underlying weakness in the jobs market, then I think Gold is going to go much higher.” Gold moved above the $1,300 per ounce mark on Bernanke’s comments that the Fed would support quantitative easing until the economy showed the appropriate strength.
At 5:15 p.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,327.90, Down $3.70.
- Silver, $19.77, Down $0.18.
- Platinum, $1,439.90, Down $3.80.
- Palladium, $731.00, Down $15.20.
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