Morning Gold & Silver Market Report – 5/13/2013
Craig C. Calvin
5/13/2013 9:36:00 AM
GOLD DOWN DUE TO STRONGER DOLLAR; QE WINDING DOWN?
The Gold price has experienced a drop in electronic trading this morning, reacting to a stronger U.S. dollar and news that retail sales in this country rose in April. Lower than expected industrial production and fixed-asset investment data out of China also helped push the metal down. The dollar’s increased performance comes as a result of investor speculation that the Federal Reserve will pull back on its current monetary easing policy in the near future. Prices for Silver are relatively flat this morning, while Platinum is down slightly, and Palladium is slightly up.
With the news that the Federal Reserve has mapped out a plan for winding down its $85 billion monthly bond-buying easing program, some analysts believe that the Fed is attempting to prepare the markets for the eventual end of the stimulus effort. However, other analysts are downplaying the significance of the news, pointing to the current lack of a time frame for the program’s end as a primary reason. According to a note from Australia’s Westpac bank, “Having spent two New York sessions pricing in a sharp change in Fed stance, it is not obvious that the [news] was worth the wait. The timing of the unwinding of QE remains data-dependent, not a serious prospect until perhaps late U.S. summer at the earliest.” One analyst, Ian Shepherdson, chief economist with Pantheon Macroeconomic Advisors, believes the Fed may actually ramp up its easing efforts. According to Shepherdson, “Developments in the inflation data make it worth considering, at least, the idea that the Fed could conceivably find itself pushed into increasing the pace of QE.”
At 9:29 a.m. (EDT), the APMEX Precious Metals spot prices were:
- Gold, $1,433.90, Down $5.20.
- Silver, $23.84, Up $0.09.
- Platinum, $1,486.80, Down $0.70.
- Palladium, $710.50, Up $2.80.
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APMEX Market Reports provide our readers with a review of spot price activity and some of the factors that may be affecting the market for Precious Metals. While the information is obtained from sources we believe to be reliable, we do not guarantee its accuracy or its completeness and we encourage you to conduct your own investigation prior to making any decision based on the information. The Market Reports are not intended as a comprehensive discussion and there may be other factors affecting the financial marketplace. These Market Reports are provided for informational purposes only and do not constitute a recommendation by APMEX to hold, purchase or sell any Precious Metal product. All orders, purchases and sales, if any, are subject to the terms of the User Agreement and other applicable policies
