Closing Gold & Silver Market Report – 8/7/2013
GOLD UNCHANGED TODAY AS MINERS WEIGH PRODUCTION POTENTIAL
Precious Metals prices remain relatively flat in today’s trading as the pressure from a potential reduction in quantitative easing measures weighs on the minds of traders and investors alike. Short-term price movement is lacking definitive momentum as many traders are enjoying time off during the summer months, and there is still the need for more clear-cut economic policy decisions. “We don't expect big positioning until we get more economic data and of course the U.S. Fed meeting in mid-September, which should provide more direction,” Deutsche Bank trader Michael Blumenroth said. With the Gold price at a three-year low, many Gold mining companies are feeling pressure to postpone production. The drop in output and supply has many analysts predicting a rise in price as there continues to be strong demand among physical buyers who are taking advantage of lower prices. Though many mining companies are wavering under the pressure, some organizations like Randgold Resources are promising to cut costs while increasing output.
Stock prices were trimmed yet again today as investors continue to show concern over the eventual tapering of the Fed’s monetary easing policy. The odd scenario in which stocks react negatively to positive economic news has been affecting markets lately. “The economic data is probably coming in a little better than expected, and because of that I think the market’s concerned that’s going to give the Fed the potential to begin tapering in September,” Mike Binger, senior portfolio manager at Gradient Investments LLC, said. When the injections of liquidity are no longer available, strong economic news will be needed if equities markets hope to sustain the rally they have been experiencing so far this year.
At 5:17 p.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,288.40, Up $3.90.
- Silver, $19.63, Up $0.02.
- Platinum, $1,441.40, Up $12.60.
- Palladium, $725.50, Up $1.20.
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