Mid-Day Gold & Silver Market Report – 8/23/2013
FED STIMULUS CREATES ‘UNIQUE MARKET SITUATION’
Precious Metals prices are trending up through mid-day trading. With the release of a government report showing new-home sales data was weaker than expected, U.S. stocks and the dollar have begun to fall. A big part of investor uncertainty is the effect the report will have on the timing of the U.S. Federal Reserve tapering its stimulus program. Managing director at Rosenblatt Securities in New York, Gordon Charlop, said, “ This has been a very unique market situation, with the Fed stimulus being such an important component to the market rally. This is uncharted waters for us, so regardless of what the move is, the fact you are someplace you haven't been before is cause for uncertainty.”
With Gold prices being historically lower than in recent years, Indonesian consumer’s purchasing rate has expanded to a four-year high. India and China are the world’s biggest buyers of Gold, however recent price slumps and an expanding middle class have spurred purchasing across Southeast Asia. Djaja M. Tambunan, finance director at PT Aneka Tambang (ANTM), said, “Our production cannot keep up with demand because it’s so high. Investors see Gold as hedging against inflation. If inflation is out of control, people will turn to either forex or Gold markets.”
At 1:12 p.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,396.60, Up $23.80.
- Silver, $23.79, Up $0.70.
- Platinum, $1,540.60, Down $0.50.
- Palladium, $752.60, Down $3.90.