Closing Gold & Silver Market Report – 5/30/2013
UNEMPLOYMENT, ASIAN REPORTS BOOST GOLD
Gold rallied today as the number of unemployment benefit applications rose more than expected in the last week. Economists surveyed by Thomson Reuters were anticipating an increase to 340,000; the market is now concerned with the rise to 354,000 reported by the U.S. Labor Department. "Third jobless claims rise in four weeks is a help to allay fears of (Federal Reserve) tightening for now as well,” RBC Capital Markets Precious Metals strategist George Gero wrote in a note. The yellow metal is perceived as a hedge against inflation for investors and with poor economic data this is believed to be the motive the U.S. Federal Reserve needs to continue with further easing measures.
It is a well-known fact that the demand for physical Gold in Asia has always been high and a new World Gold Council poll reinforces this. New research shows 82 percent of Asians polled believe Gold prices will increase or stay steady over the next five years. World Gold Council chief executive officer Aram Shishmanian said, "It is well known that there is a deep belief in Gold and its long-term prospects in India and China. Since the sudden drop in the Gold price during mid-April, which was driven by the US investment markets, this belief has been reinforced. Not surprisingly, demand has surged as consumers have seen an investment opportunity to buy significant amounts of Gold."
At 5:00 pm (EDT), the APMEX precious metals spot prices were:
- Gold, $1415.40, Up $21.60.
- Silver, $22.81, Up $0.27.
- Platinum, $1485.20, Up $30.70.
- Palladium, $759.30, Up $9.20.
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