Morning Gold & Silver Market Report – 5/31/2013
MARKETS BRACE FOR MONTH END PROFIT TAKING
U.S. stock indices are set to open lower this morning as investors await consumer spending and manufacturing data to give more clues on the future of the U.S. Federal Reserve’s bond buying program. End of month volatility is expected to be high today as well. ETX Capital market strategist Ishaq Siddiqi said in a note, “It’s the end of the month, so we are seeing huge bouts of volatility. Furthermore, appetite to book profits is running high before the month of June starts as stock indices have performed respectably again in May.”
The Gold price is not immune to this volatility, as it has backed off its two week highs. Gold has a strong inverse correlation to the U.S. dollar and changes in the price of the dollar have an impact on the Gold price. Commerzbank chief Precious Metals trader Adrien Biondi said, "Gold is clearly reacting to the movements in the dollar and share markets." Fears that the U.S. central bank could reign in their bond buying program had initially sparked a rally in the dollar and a selloff in Gold; as weak data has come out, people have once again put faith in assets like Gold.
At 9:14 a.m. (EDT), the APMEX Precious Metals spot prices were:
- Gold, $1,408.70, Down $5.30.
- Silver, $22.40, Down $0.39.
- Platinum, $1,463.30, Down $20.90.
- Palladium, $747.50, Down $13.10.
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