Morning Gold & Silver Market Report – 5/7/2013
Ryan Schwimmer
5/7/2013 8:08:00 AM
ANALYST: GOLD IS THE BEST INFLATION HEDGE
Precious Metals prices fell in overnight trading as Gold faces a key technical resistance level at $1,469.80 per ounce. A surprise rate cut in Australia put more pressure on the Gold price, as morning losses doubled after the news. Credit Suisse analyst Karim Cherif said, “The monetary easing news will continue to support liquidity, favoring more cyclical assets like stocks rather than defensive ones like Precious Metals.” A dealer in Hong Kong added, “Physical supply is still a bit tight. The world is happy to buy Gold, especially when prices were below $1,400. But Gold is reluctant to go above $1,475 because of the (exchange-traded funds).”
Andy Xie of MarketWatch believes that with growth stuck at about a two percent range and inflation seemingly rising in the future, the U.S. is in a period of stagflation. Xie wrote, “Despite its recent setback, Gold remains a big beneficiary of the current macro environment. It could make a new high in the current year and rise much higher in 2014. The Gold bull market will end when an inflation crisis pushes central bankers around the world to tighten aggressively… For the masses, Gold is the best inflation hedge.”
At 9 a.m. (EDT), the APMEX Precious Metals spot prices were:
- Gold, $1,453.90, Down $16.60.
- Silver, $23.65, Down $0.40.
- Platinum, $1,487.70, Down $21.50.
- Palladium, $684.80, Down $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
