Mid-Day Gold & Silver Market Report – 7/24/2013
GOLD, STOCKS SETTLE LOWER FOLLOWING RALLIES
Gains made by the U.S. dollar versus competing world currencies weighed down the Gold price today after reaching a one month high Tuesday. As the U.S. Federal Reserve assured investors that continuance of quantitative easing will depend on domestic economic data in the coming months, Gold has responded with a 6 percent increase over four straight sessions. Regarding the halt of Gold’s four day rally, MKS' head of trading Afshin Nabavi said, “This is a breather we desperately needed … I think $1,300 [per ounce] ought to remain a strong support.” Traders and investors of Precious Metals are looking to the August 2 announcement of the non-farm payroll data. The report will also be closely scrutinized by Fed officials, who will consider the information when deciding how to proceed with the U.S. stimulus program.
Equities indexes are down today as investors continue to weigh incoming corporate earnings data. The S&P 500 neared the 1,700 level as markets now take a breather following a rally that saw the index increase for 12 out of 13 sessions. The S&P has not experienced such a streak since September 1995. “The market has had a big run and we are a bit overbought here,” RW Baird & Co.’s chief investment strategist Bruce Bittles said. “There is a lot of optimism coming into the market short-term, so I wouldn’t be surprised if we rested in here for a while.” Expert analysts and retail investors wonder how long the bull market can be sustained as many wonder if improvement in housing, employment numbers and corporate earnings can outweigh a potential reduction in monetary stimulus measures that have been so essential to boosting stock markets.
At 1 p.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,332.70, Down $5.00.
- Silver, $20.28, Down $0.07.
- Platinum, $1,447.40, Up $14.30.
- Palladium, $747.20, Up $6.80.
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