Morning Gold & Silver Market Report – 4/15/2013

Geoffrey Varner

4/15/2013 8:30:00 AM

GOLD SELL-OFF CONTINUES

The Gold market was heavily bearish on Friday, April 12, indicated by the 400 tons of Gold that sold on the New York COMEX alone. Today, the Gold price dropped more than $100 an ounce at one point during European trading. The bear market conditions seem to be fully in place due to recent cuts to price forecasts and outflows from exchange traded products. Stan Shamu, market strategist at IG Markets in Melbourne, said that Gold’s tumble has largely been blamed on potential central-bank sales to shore up fiscal shortfalls. He goes on to say this had triggered a “breakdown of the Gold/quantative easing relationship” we have been used to.

Jonathan Barratt, founder of Barratt's Bulletin, said, “As you get closer to the cash cost production for Gold, which is around $1,200 an ounce, people get nervous.” He continues on to say that there is a lot of overreaction and believes that this offers a good entry point for investors. “For the amount of money that's going into the system, you have to take a longer-term view that stimulus will support Gold prices,” he said.

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

• Gold, $1,427.70, Down $72.70.
• Silver, $24.35, Down $2.11.
• Platinum, $1,455.00, Down $41.90.
• Palladium, $682.00, Down $28.10.

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