Closing Gold and Silver Report – 5/7/13

Nicholas Wilsey

5/7/2013 4:12:00 PM

GOLD LOWERS ON EUROPEAN OUTLOOK

The Gold price dropped today on news out of Europe regarding formation of a banking union. This has caused a belief that there will be less financial risk in the region, which has in turn caused a drop in safe haven assets such as Gold. “Any indication that Europe is working towards a resolution is bad for Gold,” Adam Klopfenstein, a senior market strategist at Archer Financial Services Inc. in Chicago, said in a telephone interview. “Money is flowing into riskier assets like equities.”

In the United States, a new consumer confidence report does not give a positive outlook for the country’s economic situation. “You look at the stock market and we’re expecting to have record earnings this year, companies have record cash on their balance sheet … but we still have 24 million people who are unemployed or underemployed in this country … [The public is] starting to understand we are not in the middle of a dynamic recovery, we’re in the middle of a 2% or 2.5% recovery, which is not very strong,” said Terry Jones, associate editor at IBD.

At 5:03 pm (EDT), the APMEX precious metals spot prices were:

• Gold, $1454.10, Down $16.40.
• Silver, $24.01, Down $0.04.
• Platinum, $1484.40, Down $24.80.
• Palladium, $684.50, Down $14.60.

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