Morning Gold & Silver Market Report – 8/15/2013
GOLD ETF BUYING RESUMES; GOLD MAY HAVE REACHED BOTTOM
Precious Metals prices remain flat this morning as Gold holds at its highest level in three weeks on investor hopes that the U.S. Federal Reserve might delay monetary stimulus tapering. Additionally, exchange-traded fund (ETF) holdings for SPDR Gold Trust, the world’s largest Gold-backed ETF, rose for a second week in a row. Outflows of ETF holdings have caused the Gold price to plunge more than 20 percent this year with exit positions totaling close to 20 million ounces, or $27 billion. However, recent additions to Gold ETF holdings could signal higher prices as such indicators often boost market sentiment.
Aggressive selloffs of Gold ETFs forced the metal to its lowest point in three years in late June. Panic selling took hold of investors as large hedge funds led by Wall Street heavyweights like George Soros, Daniel Loeb and renowned Gold bug John Paulson cut their Gold holdings during the second quarter. Though some view the mass departure from Gold positions by hedge funders as a sign that Gold’s safe haven appeal has diminished, many believe the onslaught of selling has brought the yellow metal near the bottom. "There is a large possibility the washout needed after the big decline occurred in Q2. That could signal a short-term low was in place for Gold," Sarhan Capital chief executive officer Adam Sarhan said. Now that Gold backed ETF buying has resumed and physical demand remains high, investors could see the resurgence of Gold in the near future.
At 9:29 p.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,326.70, Down $8.70.
- Silver, $21.90, Up $0.04.
- Platinum, $1,507.70, Up $1.50.
- Palladium, $748.70, Up $6.90.
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