Morning Gold & Silver Market Report – 5/10/2013

Geoffrey Varner

5/10/2013 8:55:00 AM

GOLD SETTING UP ANOTHER WEEKLY LOSS

The drop in Gold price continued overnight, putting the Precious Metal on pace to close lower for the week. The U.S. dollar gained against the yen, adding strength to Gold’s decline as a stronger dollar makes dollar-denominated commodities like Gold more expensive for holders of other currencies. BNP analysts Harry Tchilinguirian and Stephen Briggs reduced their 2013 Gold forecast, but they also predicted Gold would be trading back above the $1,600 mark in six months.

U.S. stock futures are up and, unlike Gold, are expected to extend a third week of gains as the Group of Seven finance chiefs begin a two day meeting today in Aylesbury, a town north of London. The U.S. Federal Reserve has made clear their intentions to keep rates low until the target employment level is hit. Credit Suisse Asset Management Senior Advisor Bob Parker said, “Currently, it’s 7.5 percent. The key question is: when do we get to 6.5 percent? My guess is the middle of 2014.” Since 2007, central banks around the world have announced 511 interest-rate cuts, with Vietnam and Sri Lanka joining those ranks today.

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

• Gold, $1,437.20, Down $33.90.
• Silver, $23.47, Down $0.54.
• Platinum, $1.494.90, Up $23.10.
• Palladium, $705.00, Down $11.80.

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