Mid-Day Gold & Silver Market Report – 08/01/2013

Geoffrey Varner

8/1/2013 12:06:00 PM

GOLD PRICE RETREATING; STOCKS SURGING

There is a strong inverse correlation between the U.S. dollar and Gold, such that when the dollar moves one way, the Gold price tends to move the other. Today is an example of that as we watch the Gold price pare gains made overnight and early this morning after news the Institute for Supply Management’s July manufacturing index jumped to its highest level in two years. That news was enough to push the U.S. dollar higher, putting downward pressure on Gold. It isn’t all negative news for Gold though, as there is still support from yesterday’s U.S. Federal Reserve report saying they would leave their monetary policy alone for now.

Investors on Wall Street are celebrating the mostly positive news and are holding on to their gains. Chinese and European reports came in strong, as did a better than expected U.S. jobless report. Yesterday’s Federal Reserve comments left the equities markets flat, but China’s purchasing manager’s index showed an expanding manufacturing sector in July, boosting Asian stocks. The European Central Bank kept their main interest rate unchanged, adding to the strong start on the day.

At 1:04 p.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,313.40, Down $1.60.
• Silver, $19.73, Up $0.02.
• Platinum, $1,445.50, Up $15.20.
• Palladium, $732.50, Up $4.70.

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