Mid-Day Gold & Silver Market Report – 5/24/2013
DOLLAR STRENGTHENS VS. YEN, WEIGHS ON GOLD
Gold is down slightly today as the metal continues to test key resistance levels in an effort to break northward. After rising Thursday night, the Gold price was unsuccessful in a fourth attempt to breach $1,397 an ounce, instead falling back to its current echelon. Weakness in the Japanese yen continues to bolster the U.S. dollar which is, in turn, putting downward pressure on Precious Metals. The uninterrupted printing of money by central banks to fund global stimulus programs has had little of the inflationary effect that was so integral in boosting Precious Metals. With no signs of inflation on the immediate horizon, Gold is having trouble finding a sure footing. However, as ultra-loose monetary policy persists, long-term investors see the recent price correction as a buying opportunity. "People clearly on some level think equities may have run too far too fast, and they may well still be concerned about the ultimate effects of monetary policy," Credit Suisse analyst Tom Kendall said.
Ongoing concern surrounding the future of quantitative easing (QE) and weakness in Asian markets weigh on equities markets as stocks continue to trade down heading into the weekend. “Positive durable goods sales were unable to bring in any lasting support and instead may be having the opposite effect, providing more evidence for the Fed to begin tapering QE,” CMC Markets’ senior market analyst Colin Cieszynski said. This week’s markets slump could disrupt a four week winning streak for both the S&P 500 and Dow Jones Industrial Average.
At 1:10 p.m. (EDT), the APMEX Precious Metals spot prices were:
- Gold, $1,390.10, Down $4.70.
- Silver, $22.60, Down $0.02.
- Platinum, $1,454.00, Down $4.70.
- Palladium, $727.60, Down $13.10
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