Mid-day Gold & Silver Market Report, 6/6/2012

Brandi Brundidge

6/6/2012 12:02:00 PM

PATIENCE KEY WITH GOLD; ECONOMIC STIMULUS FOR ALL?  

Gold has had its up and downs in the past few weeks. The market has many investors questioning the long term outlook for the Precious Metal. As with all investments, there will be unknown factors. At present, there is the European economic crisis, the Chinese economic slowdown, and underachieved goals for a better American economy. With these situations being in play, it could signal good news for investors. Dennis Gartman, author of The Gartman Letter, said, “The trend for Gold is still from the lower left to the upper right. I think that you want to own Gold in dollar terms; I think you want to own Gold in euro terms; I think you need to own Gold in yen terms. And quite honestly at this point, given the economic circumstances, I think you’d like to be long of gold and short the stock market.”

Talk of a stimulus by the world banks in Europe and the United States has given a boost to commodities. “We could well see easing taking place throughout many of the G 10 countries,” said Ian Stannard, an executive director at Morgan Stanley. He added, “We believe that quantitative easing from the Fed is also very much back on the table.”

Major financial institutions are sticking with their outlooks for the Gold price. “The $2,000 target has moved further away, but it still holds,” said John Stephenson, who helps manage $2.7 billion at First Asset Investment Management Inc. in Toronto. The fact remains that with the recent rally in the market, Gold is up over 4 percent from January, which would indicate the 11-year bull market run could continue.

At 1 p.m. (EDT), the APMEX Precious Metals spot prices were:

• Gold, $1,634.80, Up $18.50.
• Silver, $29.85, Up $1.36.
• Platinum, $1,471.90, Up $29.40.
• Palladium, $630.60, Up $11.80.

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