Mid-Day Gold & Silver Market Report – 04/01/2013
Ted Prince
4/1/2013 12:18:00 PM
WEAK ISM REPORTS LIFT GOLD AS STOCKS FALL
Weaker-than-expected manufacturing data has put downward pressure on the dollar today causing a mild lift in the Gold price. The Index for Supply Management (ISM) reflected a significant slowing of U.S. manufacturing expansion for the month of March. From a level of 54.2 percent in February, the index slipped to 51.3 percent last month, surprising economists who expected ISM levels to stay the same. The negative news about sluggish domestic manufacturing comes amid a climate of increasing optimism regarding the future of the U.S. economy. However, without a sustained period of positive data in industrial output and job markets, the Federal Reserve is expected to continue its policy of quantitative easing, which analysts forecast as a strong bullish factor for the long-term appeal of Gold.
Feeble ISM manufacturing reports have pulled down the S&P 500 and Dow Jones Industrial Average from record closing highs last session, though some experts are dubious regarding the real gravity of the data. “The ISM number is being misinterpreted, it is probably some misunderstanding about what the number really means - the headline doesn't look great, when in fact it is good,” said Tim Ghriskey, chief investment officer of Solaris Group. “It looks to us like this is some profit-taking after a very strong finish to the quarter.” Many investors were predicting a market dip as end of quarter profit taking coupled with market uncertainty surrounding continued economic turmoil in Cyprus. With the continuation of aggressive monetary easing and fear of market volatility, many view Gold and other Precious Metals as a safe investment refuge to protect against dollar devaluation and the insecurity of stocks and other higher risk assets.
At 1:16 p.m. (EDT), the APMEX Precious Metals spot prices were:
- Gold, $1,602.00, Up $5.30.
- Silver, $28.08, Down $0.32.
- Platinum, $1,597.30, Up $24.00.
- Palladium, $782.50, Up $15.30.
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APMEX Market Reports provide our readers with a review of spot price activity and some of the factors that may be affecting the market for Precious Metals. While the information is obtained from sources we believe to be reliable, we do not guarantee its accuracy or its completeness and we encourage you to conduct your own investigation prior to making any decision based on the information. The Market Reports are not intended as a comprehensive discussion and there may be other factors affecting the financial marketplace. These Market Reports are provided for informational purposes only and do not constitute a recommendation by APMEX to hold, purchase or sell any Precious Metal product. All orders, purchases and sales, if any, are subject to the terms of the User Agreement and other applicable policies
