Mid-Day Gold & Silver Market Report – 5/14/2013

Nicholas Wilsey

5/14/2013 12:23:00 PM

GOLD SUPPORTED BY PHYSICAL BUYING

While the cost of Gold is dropping for the third session in a row, it is not because of a lack of demand from physical buyers. Steven Evanson, chief executive officer at Evanson Asset Management, said, “The physical and true Gold market, not paper contract market, is on target for the best year ever and shortages and premiums in the physical market are the norm at this time. The physical market will dictate the price of Gold longer term but short Gold-futures contracts suppress the price short-term.” While investors keep buying physical metals, not all believe the price of Gold will hold steady in the short term. “We would not be surprised to see Gold head towards the $1,400 level as the U.S. dollar strength may cause Gold sellers to come back to the market,” Jason Rotman, president of Lido Isle Advisors in Newport Beach, Calif., said.

The number one factor in driving the world economy may be as simple as jobs in the United States. “In general terms there's no bigger number than the U.S. non-farm payrolls. The U.S. consumer is the biggest driving force in the global economy and will continue to be so for some ... time,” Henk Potts, a cross-market strategist at Barclays in London, said in reference to the monthly jobs data. Because the job rate is directly tied to the monetary easing program in the United States, it is seen as indicator of the Fed’s future plans.

At 1:01 pm (EDT), the APMEX precious metals spot prices were:

• Gold, $1426.60, Down $10.20.
• Silver, $23.43, Down $0.36.
• Platinum, $1502.20, Up $16.20.
• Palladium, $727.00, Up $6.30.

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