Mid-Day Gold & Silver Market Report – 6/20/2013
GOLD FEELS PRESSURE ON ALL FRONTS
After United States Federal Reserve Chairman Ben Bernanke hinted at the end of their monetary easing policy yesterday, the Precious Metals market started moving downward and hasn’t stopped since. However, the U.S. stimulus policy is not the only issue weighing on the price of Precious Metals today. "We're seeing a stronger U.S. dollar, real rates are looking quite strong, inflation is very low and U.S. 10-year yields are at 2.4 percent. In that environment, Gold is going to suffer,” Deutsche Bank analyst Daniel Brebner said.
Lost in the news of the monetary easing policy announcement were even more reasons the Fed may lower rates. Retail home sales in the U.S. jumped to a three and a half year high in May and a major jump in factory activity in the mid-Atlantic region of the U.S. was reported. Even with the positive news, stock markets in the U.S. and Europe have moved lower today. One expert believes this is simply a knee-jerk reaction. "The market tends to overshoot and will continue to do so. We'll probably see an overreaction to this," Lazard Capital Markets’ managing direct Art Hogan said.
At 1 p.m. (EDT), the APMEX Precious Metals spot prices were:
- Gold, $1292.90, Down $83.10.
- Silver, $19.96, Down $1.78.
- Platinum, $1368.00, Down $58.00.
- Palladium, $665.00, Down $31.40.
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