Mid-Day Gold & Silver Market Report – 8/8/2013
GOLD RALLY CONTINUES; PLATINUM AT TWO YEAR HIGH VS. GOLD
The Gold price held onto its early gains and even added to them as the U.S. dollar sits near a seven-week low against a basket of major currencies. We would have to look back to mid-June to see the last time the dollar was this low. The dip in its value is being blamed on the current Fed policy and a rise in new jobless claims. The inverse correlation between Gold and the dollar is highlighted today as the price of Gold is rising to the occasion and surging back above $1,300. However, of the Precious Metals complex, the real winner today is Platinum. The premium of Platinum, which is used in automobile catalytic converters, rose to a high of $172 per ounce over the price of Gold. The price has been supported by supply threats out of South Africa and a new Platinum ETF in Johannesburg. The new ETF added half a million ounces to its holdings in less than three months.
While Precious Metals are seeing a day of positive gains, the stock market is facing the real threat of the first four day losing streak this year. Strong trade data from China doesn’t seem to be enough to pull the markets up following a poor weekly jobless report. The Dow may actually see its first losing week in nearly two months. Paul Hogan, manager of the FAM Equity-Income Fund, said, “For a significant move, we need to have some clarity on what the Fed is going to be doing — we need to get to the point where we know when the Fed will be tapering and see that things will be fine economically.” Short of a crystal ball, continued volatility can be expected.
At 1:04 p.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,312.10, Up $24.80.
- Silver, $20.26, Up $0.66.
- Platinum, $1,494.00, Up $54.70.
- Palladium, $740.30, Up $15.60.
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