Morning Gold & Silver Market Report – 8/14/2013
GOLD COULD HIT $1,600 AN OUNCE; EUROZONE EXITING LONGEST RECESSION
Gold is flat this morning due to a stronger U.S. dollar and Treasury yields, but analysts continue to be optimistic for the yellow metal. Adrian Day, president of Adrian Day Asset Management, believes Gold will rally to $1,600 an ounce by the end of 2013, due mainly to the U.S. Federal Reserve’s mixed messages of tapering quantitative easing. “All the Federal Reserve is talking about is cutting back on the additional stimulus put in place,” he said. “No one is talking of tightening or reducing the Fed’s balance sheet.” Day continued, “At some point we’ll break through the $1,400 level and then the shorts will panic to cover, and Gold will accelerate. We could easily be at $1,600 [per ounce] by the end of the year. Certainly by 2015 we’ll be seeing $2,000 [per ounce].”
The eurozone reported better-than-expected growth figures for the second quarter with 0.3 percent development, which is exactly what Europe needs right now to exit its 40 year recession. “We've had a signal that the worst in terms of economic activity is behind us, we're entering a new period which is likely to be extended, which is likely to be a long period of sluggish recovery, very slow growth but still very weak," Standard & Poor managing director Jean-Michel Six said. The unemployment rate remains a concern, reported at 12.1 percent in June.
At 10:27 a.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,333.20, Up $10.80.
- Silver, $21.76, Up $0.34.
- Platinum, $1,499.20, Down $1.50.
- Palladium, $740.10, Down $0.30.
APMEX’s Account Managers now have extended hours Mondays through Thursdays and are here to serve you until 8 p.m. (EDT)! Or call us Fridays until 6 p.m. (EDT)! 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.