Morning Gold & Silver Market Report – 4/2/2013

Ryan Schwimmer

4/2/2013 8:15:00 AM

GOLD WAITING FOR CATALYST

Precious Metals have fallen this morning after better-than-expected data out of the eurozone was released. Another factor that is weighing on Precious Metals is upcoming policy meetings in Japan and the eurozone, with investors cautious of making big decisions before those events. Saxo Bank senior manager Ole Hansen said, “Gold has found the support it needs but at the same has not really found the catalyst to take it out of the range we have seen for few weeks and weaker data haven't made any impact this morning as key macro events are still to come later in the week. Going forward into the second quarter, there seems to be a much better balance for Gold to react to economic data after speculative positions have been much reduced and exchange-traded products saw record outflows.”

The situation in Cyprus is still weighing heavily on investors’ minds. Though it has seemed to have been pushed to the backburner, some experts believe the crisis isn’t over yet. PIMCO CEO & Co-CIO Mohamed El-Erian said, “Draconian capital controls have restored a sense of calm to a disorderly situation in Cyprus. At best, this is a short reprieve. If not followed by more fundamental (and inevitably controversial) decisions, it will just be a matter of weeks before the controls go from being a temporary solution to becoming part of an even deeper problem.”

At 9:13 a.m. (EDT), the APMEX Precious Metals spot prices were:

• Gold, $1,586.90, Down $15.00.
• Silver, $27.75, Down $0.28.
• Platinum, $1,581.10, Down $16.20.
• Palladium, $774.00, Down $9.00.