Closing Gold & Silver Market Report – 2/25/2013
ANALYST PROVIDES BULLISH FORECAST FOR GOLD IN Q3 OF 2013
Gold received a boost today after worried investors watched Italy's election with uncertainty of who might be next in power over the Italian government. “Gold had a 'near-term bottom-out' here. We had a steep selloff in the last few weeks,” said Ron Florance, managing director of investment strategy at Wells Fargo Private Bank. “We think there is a near-term opportunity for a bounce up," Florance said. The new focal point for the yellow metal will be Federal Reserve Chairman Ben Bernanke, who is set to deliver his semiannual testimony on monetary policy to the Senate Banking Committee tomorrow.
U.S. economic data heavily affects the price of Gold as investors experienced most of last week. Julien Garren explains in a note how the data influences commodity prices such as Precious Metals and shares her bullish outlook for Gold. “A recovery that led to strong job gains and an unexpected rise in inflation would likely force the Fed to end QE, and that would be very bearish for commodities. However, given the Fed voters’ highly dovish bias, we expect them to continue printing into 3Q13 when we in commodity strategy, in contrast to our economists, expect global growth to lose momentum. That sets up a major Gold rally in Q3,” Garren says.
At 5:15 p.m. (EST), the APMEX Precious Metals spot prices were:
- Gold, $1,594.30, Up $20.00.
- Silver, $29.01, Up $0.48.
- Platinum, $1,605.40, Down $3.00.
- Palladium, $736.70, Up $0.20.
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