Morning Gold & Silver Market Report – 4/22/2013

Geoffrey Varner

4/22/2013 8:16:00 AM

GOLD SHOWING SIGNS OF RECOVERY

The Gold price rose on Monday in overnight trading due to strong physical buying support after last week’s fall to a two year low. However, exchange-traded funds are still uneven after being trimmed down to the lowest levels in three years. Citi analyst David Wilson said, "We've been seeing some fairly good buying from the physical market. In terms of consumers, we saw some good buying out of India and much higher turnover in China and Shanghai, which has definitely helped." Tim Riddell, head of ANZ Global Markets Research in Asia, said, “The aggressiveness of the fall suggests that we are still in a consolidation rather in a reversal role. For me, the $1,435 level is likely to provide resistance." He continued on to say that Gold needs to get back above $1,500 an ounce to prove that the Precious Metal is recovering.

The U.S. stock market is trading higher after officials from the 20 major economies offered approval of Japan’s stimulus package. Prices have since moderated on news of Caterpillar Inc. cutting its 2013 forecast for profit and revenue. Mike McCudden, head of derivatives at Interactive Investor in London, said the weak U.S. data could “see early optimism quickly replaced by nervous tension. Furthermore, as investors have had a tendency recently to get a tad overenthusiastic during earnings season, underlying economic data may serve as a stark reminder that rude health is still a long way off.”

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

• Gold, $1,430.00, Up $31.90.
• Silver, $23.58, Up $0.52.
• Platinum, $1,436.40, Down $11.50.
• Palladium, $683.50, Up $5.50.

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