Closing Gold & Silver Market Report – 5/6/2013

Brandi Brundidge

5/6/2013 3:51:00 PM

ANALYSTS SECURE WITH GOLD; WILL MIDDLE EAST BATTLE AFFECT CRUDE OIL PRICES?

Analysts believe the most recent correction in the Gold price has run its course after the metal’s second consecutive week of gains.  Investors have noticed the movement metals have experienced and continue to feel confident purchasing hard assets.  New concerns come from the U.S. Federal Reserve and its proposal to modify quantitative easing (QE) based on more recent positive economic data.  "With the Fed's recent commitment to stand ready to alter the pace of QE, based on employment and inflation expectations, bullion prices are likely to remain highly sensitive to changes in U.S. employment data,'' HSBC said in a note.

An extensive Middle East conflict may be forthcoming, as Israel attacked Syria with targeted air strikes over the weekend.  The first response by oil traders was to increase crude prices, which quickly fell this morning as the market did not react.  "Surprisingly enough, we're selling down," Tradition Energy director of market research Addison Armstrong said. "It will be different if Syria launches strikes against Israel, but for now, the market seems to be taking it as not such a big deal.… The only thing that will get us moving into new highs for the year is the situation in Syria. Otherwise, the fundamentals are pointing lower."

At 5 p.m. (EDT), the APMEX Precious Metals spot prices were: reaction

• Gold, $1,470.30, Up $3.60.
• Silver, $24.06, Down $0.05.
• Platinum, $1,508.20, Up $5.50.
• Palladium, $698.00, Up $2.70.

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