Mid-Day Gold & Silver Market Report – 5/9/2013

Ted Prince

5/9/2013 12:25:00 PM

GOLD, STOCKS TAKE BREATHER FOLLOWING RECENT RALLY

Gold futures are down slightly as jobless claims have fallen to their lowest level since 2008.  Propelled by retail investors and central banks, the recent demand for physical Gold is still running counter to continued fund liquidation in electronic markets, leaving the yellow metal in search of solid footing.  “Analysts are now dividend in two camps: those who have announced the end of the bull cycle and those who see the recent down move as a correction rather than a trend change,” MKS Group Senior Vice President Frederic Panizzutti said.  As many experts express concern about unacceptable unemployment numbers and extremely low interest rates, expectations for prolonged monetary stimulus abound.  The printing of new money to inject into the struggling economy is causing anxiety about the possibility of inflation.  The devaluation of various world currencies is projected to be a strong bullish factor for the long-term outlook of Gold.

Stock are hovering below even levels today as equities markets take a breather on the heels of a rally that saw the S&P 500 and Dow Jones Industrial Average reach new record highs.  However, some analysts are hesitant to fully endorse current market conditions.  “It feels like we’ve been celebrating less than spectacular news and shrugging off the negative news,” Christiana Trust money manager Scott Armiger said.  “Companies are beating revised estimates. The revenue side has been disappointing. That top-line growth is critical for us.”  As we enter the summer months that have historically represented a cooling-off period for equities markets, investors will be anxiously waiting to see if momentum can continue through a time of year that has traditionally lower volume. 

At 1:23 p.m. (EDT), the APMEX Precious Metals spot prices were:

• Gold, $1,471.20, Down $5.00.
• Silver, $23.99, Down $0.03.
• Platinum, $1.515.90, Up $9.50.
• Palladium, $715.40, Up $15.20.

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