Mid-Day Gold & Silver Market Report – 7/2/2013
DOLLAR STRENGTH WEIGHS ON GOLD
The Gold price has been pushed moderately lower today as the U.S. dollar maintains its momentum versus other leading world currencies. The dollar pushed back above 100 yen today as many investors remain confident in imminent tapering of quantitative easing (QE) measures. “We know that it is an important week in the forex market when even on a day like today, when the global economic calendar contains virtually no market moving releases outside of last night’s [Reserve Bank of Australia] decision, currencies are seeing big moves,” BK Asset Management’s managing director of FX strategy Kathy Lien said. Though widespread concern regarding the U.S. Federal Reserve’s liberal asset purchase program has been bullish for Gold investors concerned with hyperinflation, the competitive devaluation of currency by central banks throughout the world has lessened the impact of a weakening dollar as the eurozone and Japan undertake similar stimulus measures.
The Dow Jones Industrial Average and S&P 500 are both up today following news that U.S. factory orders improved for May. It appears as though equities markets have made the necessary adjustments, being bolstered by QE to make gains based on positive economic data. As we await corporate earnings reports, set to begin next week, the perception of domestic strength and the validity of economic recovery are expected to be the factors that future market improvements will hinge upon.
At 2:05 p.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,247.60, Down $10.10.
- Silver, $19.51, Down $0.16.
- Platinum, $1,368.40, Down $14.10.
- Palladium, $683.80, Up $3.00.
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