Mid-Day Gold & Silver Market Report –5/27/2011
GOLD UP, DOLLAR DOWN – The US Dollar Index is down almost 0.9% at mid-day today, pushing gold prices up. There have been many forces acting on the value of the dollar lately: Euro zone fears, the ending of QE2, and the slowdown in the jobs market and GDP data, among others. Typically, the value of the dollar and gold prices have a negative correlation (as one goes up, usually the other goes down). Only time will tell where the market is heading, but the value of gold as a hedge against the dollar shows in today’s data.
Is the US heading for a double-dip recession? It may be too early to tell, but some indicators are pointing that way. “…[W]e continue to expect a disappointing bounce back to just 3% growth in the second half of the year. The slowdown feels very similar to last year's soft patch," according to economist Ethan Harris. We kept hearing that the recovery was fragile. Will the US economy be able to make a significant move upward in the next 3 to 5 years?
At 12:30PM (CT) the APMEX precious metal prices were:
- Gold price - $1,537.90 (up $13.70)
- Silver price - $37.99 (up 57 cents)
- Platinum price - $1,802.10 (up $23.00)
- Palladium price -$764.30 (up $3.10)