Closing Gold & Silver Market Report – 7/25/2013
WEAK DOLLAR LIFTS GOLD AFTER WEDNESDAY’S PRICE DROP
Gold continues to react to the state of the U.S. dollar as speculation over the tapering of domestic stimulus and macroeconomic data influence currency movement. As it has become more apparent that the Federal Reserve will inevitably reduce the level of bond purchases in the near future, investors look to other factors that historically impact world currency and the Gold price. “The market seems to be responding to recent weakness in the dollar coupled with today’s weakness in the jobless report,” Michael Haynes, chief executive officer APMEX, Inc., said. “Generally, it seems that Fed tapering is really becoming less of an issue as the world economic data begins to weigh on various currencies.” Look for traders and investors alike to pay close attention in the coming weeks to U.S. and global economic news that could influence metals including word from Fed Chairman Ben Bernanke concerning the future of quantitative easing (QE).
While investors grope for signs that QE is set to be reduced, stock prices were lifted slightly today as corporate earnings data continues to boost optimism. “We are kind of stuck in that middle ground where data is not bad enough to be encouraging about more quantitative easing, but it’s not good enough to convince people that there is enough there fundamentally to justify sharply higher prices,” Bruce McCain, chief investment strategist at the private banking unit of KeyCorp, said. As we continue to move through the second half of the year, investors will desire domestic growth, positive earnings and improved employment numbers to be assured the current bull market can be sustained.
At 5:14 p.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,337.10, Up $14.60.
- Silver, $20.33, Up $0.22.
- Platinum, $1,449.00, Down $6.20.
- Palladium, $740.50, Down $5.80.
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