Morning Gold & Silver Market Report – 8/12/2013
GOLD RISES ON ASIAN ECONOMIC NEWS
Gold futures are trading higher this morning as SPDR Gold Trust Fund, the world’s largest Gold exchange traded fund (ETF), substantially increased its holdings by 1.8 metric tons, marking its first growth since early June. Boosted by today’s news, Gold could realize a four session winning streak initially prompted by last week’s strong import and industrial output data from China. “The higher-than-expected import growth indicates a Chinese domestic-demand recovery, which will bode well for gold demand,” Sharps Pixley director Austin Kiddle said. While the desire for Gold ETFs in the U.S. has waned over the last several months, electronic Gold holdings from eastern nations like China and Japan have stayed constant despite the yellow metal being down nearly 21 percent this year. According to Kiddle, this data indicates “that Asia and emerging markets will help shape the future Gold demand.”
As Gold breaks for modest gains Monday, U.S. stock futures are down following their worst weekly close since June. Weighing down equities today was the release of poor gross domestic product data from Japan. After a week in which it appeared that China’s economy was finally rebounding, the Nikkei, Japan’s benchmark stock index, has fallen to its lowest level in six weeks. With western nations currently digesting reports from Asia, eyes will turn to domestic news to gain a foothold on the market’s next movement as the release of U.S. budget deficit details are set for this afternoon.
At 8:41 a.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,342.50, Up $28.30.
- Silver, $21.36, Up $0.86.
- Platinum, $1,508.70, Up $7.10.
- Palladium, $745.90, Up $3.40.
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