Morning Gold & Silver Market Report – 5/9/2013

Geoffrey Varner

5/9/2013 8:10:00 AM

ETF SELLING VS. PHYSICAL BUYING

The Gold price slipped in overnight trading as the U.S. dollar strengthened against a basket of other currencies. Investors were also profit taking on a three-week rally of European shares, which reached multi-year highs, helping keep the dollar steady against the euro. The Gold price has rebounded more than $100 since the initial drop on April 16. Supplies remain tight in some parts of Asia but ETF outflows show no sign of slowing down, keeping prices stuck where they are. Standard Bank analyst Walter de Wet said, "Of course we have to look at the ETF liquidation, which is a drag, and on balance I'd say prices will probably remain range bound between $1,450 and $1,480 in the short term."

Next on tap for the U.S. stock market is the annual question of whether to sell in May. Although the Dow Jones Industrial Average and the S&P 500 are riding on record highs, one of the key pieces of this year’s  strategy is the jobs report. The report has been strong enough to show the economy is not as bad as some feared, but still soft enough to encourage the Federal Reserve to maintain their easing policy.

At 9 a.m. (EDT), the APMEX Precious Metals spot prices were:

• Gold, $1,465.70, Down $10.50.
• Silver, $23.88, Down $0.14.
• Platinum, $1.508.60, Up $2.20.
• Palladium, $697.00, Down $3.20.

APMEX’s Account Managers now have extended hours Mondays through Thursdays and are here to serve you until 7 p.m. (CDT)! Or call us Fridays until 5 p.m. (CDT)! If you have any questions about investing in precious metals or simply would prefer to place your order by telephone, we are here to help.