Mid-Day Gold & Silver Market Report – 4/8/2013
Ted Prince
4/8/2013 12:06:00 PM
“MONETARY RED BULL” BRINGS CONCERN FOR ECONOMIC FUTURE
Following a strong boost to Precious Metals prices Friday, the Gold price eased once again today as a stronger U.S. dollar put pressure on the metal. A weaker-than-expected jobs report last week was the main driver of Gold. “Gold was a major beneficiary of this data, as the lower-than-expected jobs numbers saw a slight jump back into safe havens,” said IG Markets strategist Evan Lucas.
The recent rally in equities markets has caused many formerly sidelined investors to exit traditional safe-haven investments like Precious Metals and seek out riskier assets. However, many financial experts remain very wary of the record high equity levels as many believe the liberal bond-purchase program perpetuated by the Federal Reserve has artificially propped up the stock market. Renowned PIMCO Portfolio Manager Bill Gross has described the easing programs undertaken by central banks as “monetary Red Bull.” "We don't necessarily endorse this Red Bull product, but we recognize its ability to energize financial markets. Monetary Red Bull can feel good for a while, it doesn't have many calories, but it does have some negative consequences down the road" on asset prices, he said. The expansion of credit markets combined with low interest rates and growing inflation prospects exacerbated by central bank easing measures have caused many to question the possibility of continued economic growth. "Unless we ultimately de-lever...then the economy is in difficulty in terms of expanding," Gross added.
At 1:03 pm (EDT), the APMEX precious metals spot prices were:
- Gold, $1573.70, Down $3.70.
- Silver, $27.26, Down $0.06.
- Platinum, $1537.50, Up $2.00.
- Palladium, $729.30, Up $5.40.
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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
