Closing Gold & Silver Market Report – 8/13/2013
SEASONAL GOLD DEMAND COULD BOOST THIRD QUARTER PRICE
Following a four day rally, Gold ended the day down after a strong dollar and an optimistic U.S. economic outlook increased the likelihood the U.S. Federal Reserve will soon rein in its monetary easing program. Strong economic data has outweighed negative data in 2013, which Jim Russell, senior equity strategist at U.S. Bank’s Private Client Reserve, said is “consistent with the Federal Reserve moving ahead with the first step of tapering purchases of both Treasury and mortgage-backed securities in the open market over the next few weeks.” Though the Gold price has taken a beating this year, worldwide demand for Gold is historically boosted in post-summer months as industrialized nations manufacture jewelry ahead of the various holidays. Along with figures that show China overtaking India as the number one buyer of physical Gold, the third quarter could be a robust period for the yellow metal.
U.S. stocks rebounded from early losses Tuesday as a two-day losing streak was halted following mixed retail sales reports indicating modest domestic expansion. “I don’t know that we’re going to have a roaring recovery anytime soon, but the economy does seem to be advancing, slowly but certainly advancing, and that I think has sunk in finally,” Pioneer Investment Management Inc. fund manager John Carey said. As economic numbers continue to show improvement, many analysts are confident the Fed will announce their intentions to begin a reduction of monetary easing during September, and traders and investors await the potential impact on both Precious Metals and equities markets.
At 5:24 p.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,322.20, Down $14.00.
- Silver, $21.51, Up $0.08.
- Platinum, $1,499.60, Down $0.10.
- Palladium, $739.40, Up $0.30.
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