Mid-Day Gold & Silver Market Report – 5/21/2014
Peter LaTona
5/21/2014 12:17:00 PM
GOLD PRICES SLIP DESPITE IMPORTANT NEWS COMING OUT OF INDIA
Gold prices remain soft throughout morning trading despite news coming out of India that could very well left Gold prices. India and China buy over 50 percent of the world’s Gold and news broke today that India’s new government is planning to ease Gold import restrictions. In short, this will make it easier for Indian consumers to buy Gold, as they are also the number one buyers of Gold. Reuters quotes Kumar Jain of the Mumbai Jewelers Association in saying “[Prime-minister elect Narendra Modi has committed]” to the Jewelers Association that change is coming. “We expect some good news to come in July," said Jain, "either by lowering of [10%] import duty or easing of 80/20 rule." It is important to note that India has no domestic mining operations and is therefore dependent on importing Gold.
The notes from last month’s Federal Open Market Committee will be released today at 2 p.m. (ET). Gold and Silver prices seem to be in limbo waiting on the news, while the U.S. stock market has recovered the losses from Tuesday. "I suspect they are going to continue this low interest rate environment, very accommodative monetary policy, for a very long period of time in an effort to help markets feel a little bit calmer as it relates to a hike in interest rates," Joseph Tanious, global market strategist at J.P. Morgan Asset Management, said. If investors view the accommodative monetary policies as continuing, it should be supportive for both Gold and stocks.
At 1:10 p.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,289.80, Down $6.80.
- Silver, $19.39, Down $0.06.
- Platinum, $1,474.70, Up $5.80.
- Palladium, $831.00, Up $4.20.
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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
