Mid-Day Gold & Silver Market Report – 1/28/2013
GOLD AND STOCKS RELATIVELY EVEN ON MIXED DATA
Gold is trading flat today following three straight sessions of losses. A stronger dollar and mixed economic data have caused investors to temporarily back-off from the safe-haven appeal of Precious Metals. “There is some confusion in the minds of almost all Gold and Silver traders,” Phil Storer, director of trading at Dillon Gage Inc, said. “A lack of fresh panic news is taking its toll and the metals are resting.” The Federal Reserve’s quantitative easing (QE) has been the main driver of Precious Metals prices in recent years. Investors await news from the Fed over whether or not QE will be necessary to stimulate a lagging economy in the coming years. Further stimulus measures would be expected to boost metals prices once again.
Stocks also remain level following the longest rally on the S&P 500 since 2004 and the highest level since late 2007. Though economic factors indicate mild improvement, analysts still remain guarded before accepting that equities markets are bullish. Regarding the recent upward trend in stock prices, Barry James, president of James Investment Research, was prompted to state, “That is a little bit of a warning sign to us that we could be more in a topping phase than actually a new bull phase. It would take a lot to really convince everyone that happy days are here, and we can just ride this off into the sunset.”
At 1 p.m. (EST), the APMEX Precious Metals spot prices were:
- Gold, $1,655.80, Down $2.80.
- Silver, $30.83, Down $0.42.
- Platinum, $1,684.10, Down $30.80.
- Palladium, $741.00, Down $1.00.
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