Mid-Day Gold & Silver Market Report – 5/13/2013

Ryan Schwimmer

5/13/2013 12:04:00 PM

FED’S EXIT STRATEGY DOMINATING HEADLINES

Precious Metals prices are relatively flat, and U.S. stocks are trading lower as the Federal Reserve’s exit strategy for quantitative easing is dominating the headlines. Dan Greenhaus of BTIG LLC explained the stock market’s side of things by saying, “In the short term, anything that discusses the Fed’s exit strategy has been associated with market weakness, and today is no exception.” Scott Wren of Wells Fargo believes that stocks may be in a holding pattern now. He said, “We’ve come a long way in a very short time. It wouldn’t surprise me at all if we’ve stalled here for a bit. It’s not going to sell off very much, almost no matter how bad [forthcoming economic] data is. Momentum is to the upside.”

The U.S. dollar strengthened after retail sales unexpectedly rose in April, and the Group of Seven affirmed Japan’s quantitative easing strategy. Harry Tchilinguririan of BNP Paribas said, “The value of the dollar has weighed on the prices of all commodities, [especially] the more sensitive ones such as oil and Gold.” Simply put, with the yen weakening, the dollar looks stronger, and therefore the price of Gold is typically pressured by such movements.

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

• Gold, $1,436.40, Down $2.70.
• Silver, $23.78, Up $0.03.
• Platinum, $1,486.50, Down $1.00.
• Palladium, $720.30, Up $12.60.

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