Morning Gold & Silver Market Report – 3/14/2013

Geoffrey Varner

3/14/2013 8:31:00 AM

U.S. DOLLAR HIGHS SUPPRESS GOLD; ECONOMY SHOWING SIGNS OF RECOVERY

One of Gold’s broader appeals is its inverse correlation to the U.S. dollar, making it an ideal safety net for investors. The dollar is currently near seven month highs against the basket of global currencies. Bullish retail sales spurred hope that the domestic economy could weather the government tax hikes and spending cuts. SP Angel analyst John Meyer said, “Current dollar strength is reflective of a better economic environment in the United States and Gold is likely to keep coming off as investors move to risk-on strategy and away from securities assets.”

The U.S. stock market continued to rise this morning after reports that jobless claims fell by 10,000. In a separate report, producer prices rose by 0.7 percent in February. Both reports are signs of a sustained economic recovery. In addition, the job market’s continued growth is beginning to push wages up. Higher wages means higher domestic demand for good and services. Additionally, a government report showed that January’s layoffs were the fewest since 2000. The recovery in the labor market could intensify the debate that the Federal Reserve could alter their course of monetary easing.

At 9:12 a.m. (EDT), the APMEX Precious Metals spot prices were:

• Gold, $1,581.80, Down $8.60.
• Silver, $28.67, Down $0.35.
• Platinum, $1,584.90, Down $10.20.
• Palladium, $761.90, Down $8.40.

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