Mid-Day Gold & Silver Market Report – 6/28/2013
GOLD REBOUNDS AFTER WAVE OF SHORT COVERING
The Gold price experienced a turbulent morning of trading Friday as the initial price drop of roughly $20 an ounce evaporated following a barrage of short covering. “There are some people covering shorts and some people taking losses as part of quarterly book-squaring to position for the next quarter,” Bill O'Neill, partner of commodities investment firm LOGIC Advisors, said. As Gold experiences modest gains headed into the weekend, Silver is up more than 4 percent today. Gold is set to realize its largest quarterly dip since 1968, which continues to cause panic among electronically traded Gold investors, but has provided ongoing demand for bargain hunting physical Precious Metals buyers.
Though major U.S. equities indices are down slightly Friday, stocks are still headed for their first weekly gain in three weeks. “I think the initial panic following [Fed Chairman] Ben Bernanke’s comments last week has finally subsided,” Craig Erlam, market analyst at Alpari U.K., said. “Investor sentiment is still very much linked to the perceived longevity of the Fed’s asset purchases though, as seen by the reaction to the GDP figure on Wednesday when the downward revision prompted a rally in the equity markets.” Both metals and equities investors will continue to await word from the Federal Reserve relating to the perpetuation or reduction of current large scale asset purchases.
At 12 p.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,226.50, Up $12.90.
- Silver, $19.54, Up $0.89.
- Platinum, $1,339.60, Up $12.40.
- Palladium, $661.60, Down $10.90.
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