Closing Gold & Silver Market Report – 1/24/2013
MORGAN STANLEY REMAINS BULLISH FOR GOLD; SPAIN’S CHALLENGING UNEMPLOYMENT RATE
A strengthened U.S. dollar turned Gold’s price down today as the Jobless claims fell for the second straight week. However, Morgan Stanley is optimistic for the yellow metal with a bright forecast of $1,720 for 2013 and $1,600 in 2014. “We expect that very low nominal interest rates, an ongoing commitment to QE3 and a below-par recovery with attendant pressure on the dollar will still combine to encourage investment buying of gold,” Morgan Stanley said in the report.
Spain received some disturbing news today as the National Statistics Institute reported the unemployment rate rose to 26 percent in the fourth quarter of 2012. The bond market is showing a successful recovery as Spain’s treasury raised 7 billion euros of ten-year bonds this week. Nicholas Spiro, the managing director of Spiro Sovereign Strategy said, "The scale and severity of the downturn in Spain shows no signs of abating and is likely to persist for some time yet…Make no mistake about it, foreign investors are not returning to Spain's debt market because the economy is on the mend. This is a hunt for yield eerily reminiscent of the convergence trade at the time the euro was launched."
At 5 p.m. (EST), the APMEX Precious Metals spot prices were:
- Gold, $1,669.10, Down $19.60.
- Silver, $31.68, Down $0.80.
- Platinum, $1,682.80, Down $9.00.
- Palladium, $728.50, Up $1.30.
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