Morning Gold & Silver Market Report – 4/8/2013

Nicholas Wilsey

4/8/2013 9:51:00 AM

GOLD PRICE IN HOLDING PATTERN

After ending last week on a high note, Gold has started this week relatively flat. There is a continued move from commodities into equities, though many economists wonder how long this trend will last. “Equities are stronger, and that's why we are seeing some profit-taking in Gold, but losses could be contained as there is still a lot of uncertainty, especially in Europe, where some issues are re-emerging in Portugal,” MKS Capital Senior Vice President Bernard Sin said. This week’s main focus will be on the United States Federal Reserve meeting and the future of their easing policies. “Market participants will be keen to get further clarity on where Fed members stand on QE, particularly given rising talks of flexibility and potential tapering of asset purchases,” UBS said in a note. 

There is growing negative opinion regarding the direction the Fed is headed. More than a dozen states have initiatives in motion to use Gold and Silver as recognized legal tender. Most experts feel this growing movement is not as much about Precious Metals as it is about the discontent for the government’s actions on the current economic situation. “The legislation is about signaling discontent with monetary policy and about what Ben Bernanke is doing,” University of Central Oklahoma Political Science Professor Loren Gatch said. “There is a fear that the government, or Bernanke in particular and the Federal Reserve, is pursuing a policy that will lead to the collapse of the dollar. That’s what is behind it.” 

At 10:06 am (EDT), the APMEX precious metals spot prices were:

• Gold, $1576.80, Down $0.60.
• Silver, $27.30, Down $0.02.
• Platinum, $1537.90, Up $2.40.
• Palladium, $730.50, Up $6.60.

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