Morning Gold & Silver Market Report – 5/27/2014

Peter LaTona

5/27/2014 9:22:00 AM

GOLD,  SILVER TO TWO WEEK LOWS

Gold and Silver prices have fallen to a two-week low as investors try to assess the results of Sunday’s Ukrainian election. Ukraine President-elect Petro Poroshenko said all the right things about easing tensions in the region, but fighting continued.  For the moment, Gold prices are falling on the expectation of easing tensions. “Although the rhetoric between Ukraine and Russia is friendlier in terms of the press releases, the action on the ground suggests that this crisis still has the potential to flare up again down the road,” Edward Meir, an analyst at INTL FCStone in New York, wrote in an email. “We continue to maintain a relatively constructive view on the Gold market, although we are less sanguine about its prospects going into the second half of the year.”

China is making a move to obtain a greater role in setting Gold prices. This is not surprising as the country recently surpassed India as the world’s leading consumer of Gold. Last week, China’s central bank gave permission for the Shanghai Gold Exchange (SGE) to launch a global trading platform in Shanghai’s free trade zone. “China wants to have more voice in Gold prices,” Jiang Shu, an analyst with Industrial Bank, one of 12 banks allowed to import Gold into China, said. “The international exchange is the first step towards gaining a say in Gold pricing.”

At 9:10 a.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,280.00, Down $13.90.
• Silver, $19.21, Down $0.26.
• Platinum, $1,469.30, Down $4.50.
• Palladium, $834.10, Up $1.60.

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