Morning Gold & Silver Market Report – 2/25/2013
GOLD PRICE FINDS SUPPORT IN PHYSICAL BUYING
Last week, Gold hit a seven month low, which most economists expected would trigger an increase in physical purchasing of the yellow metal. This morning has shown that the Gold price got to a level buyers could no longer ignore. While there is still uncertainty in the marketplace, there is a growing sentiment that the price of Gold is moving upwards. "After the drop, hopefully the worst is over for Gold, although the support is still at $1,527. I believe (after) a break above $1,585, you might see a trend that it should test $1,600," managing director of GoldSilver Central Pte Ltd in Singapore Brian Lan said. While the lower prices have changed some outlooks for the coming year, the long term is still positive. "While we have downgraded our near-term views, Gold prices should accelerate in the second half on improving demand from India and China."
The discussion of the United States Federal Reserve stimulus policy was in full force last week. There are two sides to the Fed’s stimulus program and both arguments have merit. “The rate-sensitive sectors, most notably housing and autos, are kicking into a higher gear,” Mark Zandi, chief economist for Moody’s Analytics Inc. in West Chester, Pennsylvania, said. “This reflects the Fed’s aggressive monetary policy and resulting rock-bottom interest rates,” along with “working off the excesses of the boom and bubble.” While there have been many positive indications from various reports, some economists are not sold on the progression. “This makes a weak economy significantly weaker,” Martin Feldstein, an economics professor at Harvard University, stated regarding the policies of the Fed. Feldstein believes that the moves are a temporary fix that will not solve the long term issues facing the economy.
At 9:04 a.m. (EST), the APMEX Precious Metals spot prices were:
- Gold, $1,587.30, Up $13.00.
- Silver, $28.99, Up $0.47.
- Platinum, $1,621.50, Up $13.10.
- Palladium, $749.20, Up $12.90.
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