Closing Gold & Silver Market Report – 8/19/2013
ANALYST RECOMMENDS GOLD IN YOUR PORTFOLIO
Gold was flat for the majority of the day after the superb bounce it received last week from weak U.S. economic data. Investors are beginning to return to Gold as analysts predict a very optimistic outlook for the metal. JPMorgan analyst, John Bridges, stays true to the yellow metal and suggests that Gold should be part of a portfolio, especially if someone is not confident in their currency. “We feel that there's at least a technical bounce here,” he said, adding that Gold was also a hedge against an economic decline. “If you're still uncertain about whether the financial crisis is truly over, then having some Gold in the portfolio makes a lot of sense.” Bridges added, “Gold is not an investment. Gold is a wealth-protection device. Gold does not increase in value over the long term. It holds its value over the very, very long term."
Precious Metals performed at their best last week with Silver rising 14.3 percent and Gold increasing by 4.5 percent. “We obviously had a very good run last week; I think the markets really just wanted to test the strength of that break we had above $1,350, and that has basically allowed it to drift a bit lower today,” Ole Hansen, head of commodities strategy at Saxo Bank, said. “You would imagine if there's one metal that really needs the correction now it's Silver.” Last week’s heavy price movement came from a weaker dollar and speculation the U.S. Federal Reserve will announce its plan to taper fiscal policy in September.
At 5:15 p.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,366.80, Down $6.20.
- Silver, $23.22, Down $0.18.
- Platinum, $1,510.30, Down $18.30.
- Palladium, $752.30, Down $12.30.
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