Mid-Day Gold & Silver Market Report – 5/3/2013

Ted Prince

5/3/2013 12:21:00 PM

GOLD STEADY AS JOBS REPORT BOOSTS STOCKS

Precious Metals prices remain relatively unchanged during Friday’s session as physical demand continues to buoy the market following the release of strong jobs data. Though Gold has clawed its way back to regain half the ground it lost during its two session slide in the middle of April, the price settled 7.7 percent lower going into May than its previous level at the end of March. “The massive wave of buying we’re seeing has reminded market participants from New York to Beijing that demand for Gold bars, coins and jewelry is supportive of the long-term trend for Gold,” David Schraeder, a spokesman for the World Gold Council, said. APMEX saw Gold sales surge 400 percent in the month of April compared with the same time last year. “We beat the previous record day by about 30 percent, based on dollar sales volume,” Michael Haynes, chief executive officer at APMEX, said. Though tightening supply lines have caused industry-wide premium increases of 1 to 2 percent, demand for bars and coins remains strong among individual investors seeking the safe-haven appeal of physical Precious Metals.

As Precious Metals take a breather, the S&P 500 and Dow Jones Industrial Average have both rallied to new highs on the heels of growth in employment numbers. Piercing the psychological levels of 1,600 and 15,000 respectively, the S&P and Dow continue to respond positively to better than expected economic data. Though Friday’s report shows that jobless claims have reached a five year low, some analysts remain hesitant to endorse a full strength economic recovery. Referring to today’s jobs data, Mark Zandi, chief economist at Moody’s Analytics, said, “It's a breath of fresh air, but I still think job growth is slowing.” Zandi referenced the reduction of hours worked and the rise in part time employees as indicators of his position. 

At 1:22 p.m. (EDT), the APMEX Precious Metals spot prices were:

• Gold, $1,466.50, Down $3.60.
• Silver, $24.02, Up 0.11.
• Platinum, $1,498.00, Down $3.70.
• Palladium, $695.30, Up $0.00.

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