Mid-Day Gold & Silver Market Report – 8/20/2013
PRECIOUS METALS CONTINUE ASCENT
Uncertainty surrounding the release of July’s Fed minutes is weighing on the dollar on Tuesday as Gold continues to benefit from the downward pressure. "In the end everybody is looking to the next FOMC minutes on Wednesday," said Tobias Merath, head of commodity research at Credit Suisse. "The Fed might sound rather dovish in the minutes, and that would be bullish for gold." Rising above technical resistance levels last week, Gold took off to end with its strongest weekly performance in over a month. Technical analysis reveals that Gold is close to finishing above its 100-day moving average of $1,371. A price rally that boosted the metal beyond this level could influence further increases to the spot price of Gold. "A close above this level, combined with ETF holdings that are steadying and a physical market that is holding up relatively well despite the price rally, could possibly see the metal testing $1,400 and even reaching higher soon," Standard Bank said in a note.
U.S. stocks have risen today following four session losing streak. Positive retail sales results helped buoy equities ahead of Wednesday’s release of the Fed minutes from July. “We had some pretty good retail earnings, it just shows the consumer is not dead and that things are moving in the right direction,” said Frank Ingarra, head trader at NorthCoast Asset Management LLC. His firm manages about $1.7 billion. “Everyone is still focused on Fed tapering. We remain cautiously bullish with pretty full exposure to stocks.” Investors will also await the outcome of this week’s annual Jackson Hole retreat in which central bankers and economists will meet to discuss the future of America’s monetary policy.
At 2:15 p.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,373.30, Up $5.60.
- Silver, $23.08, Down $0.17.
- Platinum, $1,519.90, Up $9.90.
- Palladium, $750.60, Down $3.80.
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