Mid-Day Gold & Silver Market Report – 5/7/2013

Ryan Schwimmer

5/7/2013 11:41:00 AM

AUSTRALIA’S RATE CUT LEADS TO PROFIT TAKING

After Australia’s surprising rate cut announcement this morning, U.S. stocks are climbing while the Gold price has remained relatively flat. Many Gold traders are choosing to take the profit on their positions as stocks approach all-time highs. Commerzbank AG analyst Daniel Briesemann said, “One might say that there’s a risk-on mood at the moment. It's a little bit strange, but it might be that we see some profit-taking [in Gold] after the move up of more than $100 after the low two or three weeks ago.”

The Dow Jones Industrial Average hit a new high above 15,000 after Australia’s announcement. Recent U.S. employment data was released as well, and was mostly positive; however, Mark Luschini of Janney Montgomery said, “If you look at the domestic data over the last four out of six weeks, sequentially, the news has weakened, and it is supportive of the summer swoon. But that said I don't think the conditions are the same as they have been for the last couple of years. I do think equities, after having risen some 14 percent this year, are vulnerable...unless we get some economic validation.”

At noon (EDT), the APMEX Precious Metals spot prices were:

• Gold, $

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