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

Geoffrey Varner

4/4/2013 8:23:00 AM

GOLD PRICES RETREAT ON STRONGER DOLLAR

The Gold price dropped to a 10 month low overnight on the strength of the U.S. dollar. Similar commodities are also seeing price drops. The Silver price is at its lowest point since July and Platinum’s price is at a level not seen since August. Gold, a traditional safe haven investment, has missed the opportunity left open by the Bank of Japan’s easing steps and the recent tensions in the Korean peninsula. VTB Capital analyst Andrey Kryuchenkov said, “At this point it's all about sentiment and if bailout talks in Cyprus, tensions in North Korea and BOJ (Bank of Japan) monetary easing have not triggered buying it is difficult that we will see a turnaround in prices any time soon.”

U.S. stock futures are taking advantage of Japan’s announcement of aggressive easing measures designed to pull the country from an extended deflationary period. Steen Jakobsen, chief economist at Saxo Bank, said the BOJ “did the job and delivered a massive QE package – this is seen as more ‘juice’ for investors’ desire for riskier assets at the expense of safe havens.” The European Central Bank (ECB) and the Bank of England kept their respective monetary policies unchanged, as expected. This is the ninth month in a row that the ECB has left the rate where it is.

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

• Gold, $1,551.50, Down $3.50.
• Silver, $26.84, Down $0.06.
• Platinum, $1,525.00, Down $15.40.
• Palladium, $737.50, Down $16.90

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