Mid-Day Gold & Silver Market Report – 4/26/2013

Ryan Schwimmer

4/26/2013 12:08:00 PM

GOLD, SILVER REVERSE COURSE; EURO CRISIS SPREADING

Gold and Silver prices took a sudden downward turn in morning trading. After Gold neared the intraday high of $1,484 per ounce, there is speculation that high volume day traders influenced such a drop. Analyst Chintan Karnani said, “The only reason is profit taking before the weekend and failure to break past an intraday high… This fall has scared traders and they will be using every rise to exit Gold buys.” Karnani reiterated that traders are the skittish ones, not investors. This is explained by Gene Arensberg of the Got Gold Report, who believes the market is likely “seeing the effects of intense worldwide physical metal demand over the past week, from manufacturers on down to small investors on the street.”

The European debt crisis is spreading to the eurozone’s stronger economies now, according to German industrial giant Daimler, maker of Mercedes-Benz autos and trucks. Daimler said it is feeling the effects of the crisis in Germany, signaling the spread of the problem from the smaller countries to the eurozone’s economic powerhouse. High Frequency Economics chief economist Carl B. Weinberg said, “The EU has made Europe a much more cohesive economy, which is good when things are going up, but when things are going down the multiplier is very strong. An outgoing tide lowers all ships.”

At 12:07 p.m. (EDT), the APMEX Precious Metals spot prices were:

• Gold, $1,455.70, Down $8.80.
• Silver, $23.91, Down $0.34.
• Platinum, $1,477.00, Up $11.40.
• Palladium, $682.10, Down $1.30.

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