Mid-Day Gold & Silver Market Report – 4/25/2013
Ted Prince
4/25/2013 12:07:00 PM
GOLD GAINS; CONTINUED QE LIKELY
Gold is once again on the rise as strong physical demand was underpinned by the speculation of continued ultra-loose global monetary policy. Today’s two percent boost in the Gold price has driven the metal up enough to regain half of the ground it lost following last week’s considerable sell-off. Sentiment surrounding the upcoming European Central Bank (ECB) meeting is that further liberal monetary easing could be announced; such proclamations have been historically strong catalysts in lifting Precious Metals prices.
As investors await ECB reports regarding the future of its fiscal policy, recent speculation regarding a scaling down of the Federal Reserve’s monthly asset purchase program might be premature. Though quantitative easing (QE) measures have been instrumental in boosting the stock market, more indicative factors crucial to gauging the true shape of the U.S. economy are struggling. Inflation and unemployment are still at unacceptable levels and commitment to QE seems imminent until long term improvements are made. Perceived advancement of the U.S. economy has been unsteady, leading analysts at RBC Capital Markets to state, "Practically speaking, we don't believe some magical number will dictate Fed policy. What we think the Fed wants to see is a backdrop that ceases to be so uneven. Such a jagged backdrop, if it continues, will keep the Fed fully engaged in buying up assets."
At 1:05 p.m. (EDT), the APMEX Precious Metals spot prices were:
- Gold, $1,461.60, Up $35.40
- Silver, $24.14, Up $1.21.
- Platinum, $1,464.30, Up $32.50.
- Palladium, $683.00, Up $14.30.
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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
