Mid-Day Gold & Silver Market Report – 10/22/2012

Ted Prince

10/22/2012 12:00:00 PM

GOLD HIGHER AFTER TWO WEEKS OF LOSSES; INVESTORS AWAIT GLOBAL POLITICAL ACTION

Gold is trading modestly higher today following a week of hefty losses. “Gold is hanging in a trading range with a slight upward slant with bargain hunters buying ahead of a two-day [Federal Open Market Committee] meeting this week,” said Jeffrey Wright, a managing director at Global Hunter Securities. The recent dip has created a buying opportunity for investors who anticipate a long-term upward trend for the metal. “It is hard to find anyone who does not think that Gold is going higher and will remain strong for some time,” said one Precious Metals analyst.

Poor corporate data pushed down the Dow Jones Industrial Average and S&P 500 for the third day in a row. “It really comes down to earnings at this point,” said Peter Jankovskis, co-chief investment officer for Oakbrook Investments. “We’ve seen many companies beating earnings estimates. Yet investors are keeping an eye on their ability to grow revenue.” Investors also continue to await news from the eurozone regarding a sovereign bailout of Spain and the Nov. 6 U.S. presidential election before taking any bold investment action. "It's more of a wait-and-see. Once we have some clarity on the political front I think people are going to be more than willing to put some bets on the table," said Peter Kenny, managing director at Knight Capital.

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

• Gold, $1,728.40, Up $4.40.
• Silver, $32.38, Up $0.26.
• Platinum, $1,608.00, Down $5.00.
• Palladium, $623.90, Down $0.10.

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