Mid-Day Gold & Silver Market Report – 2/6/2013
GOLD PRICE HOLDS STEADY AS DEMAND STAYS UP
The price of Gold has remained relatively flat today. It has raised a small amount on news out of Europe concerning more negative economic reports. A major issue facing the Precious Metals market is a lack of direction. The reports from the United States show an improvement in many major areas such as employment and durable goods, however, looming budget cuts at the first of March could drastically change the outlook of the economy if not dealt with by the U.S. congress. “Gold seems to have disconnected from most other markets as investors simply don't know in which direction you will get the next $100 move,” Saxo Bank analyst Ole Hansen said. “We have not closed above or below the 50- and 200-day simple moving average for the past six days (today $1,664-$1,678). Once that happens we may get the clue as to which of the two key support and resistance levels will be tested first.”
Toward the end of last year, the World Gold Council estimated that China would overtake India as the world’s largest buyer of Gold. A recent report shows that Gold imports from Hong Kong to mainland China increased by 94 percent last year to more than 834,000 kilograms. Economists are predicting large amounts of Gold imports in China this year as well. “We see demand continuing to be robust into 2013,” said Want Xiaoli, chief investment strategist at CITICS Futures Co., a unit of China’s biggest listed brokerage. “The economy will recover, albeit slowly, while real interest rates will remain low and central banks will continue to accumulate. These are all bullish for Gold.”
At 1 p.m. (EST), the APMEX Precious Metals spot prices were:
- Gold, $1,678.50, Up $4.50.
- Silver, $31.87, Down $0.05.
- Platinum, $1,735.60, Up $28.40.
- Palladium, $765.50, Down $1.00.
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