Mid-Day Gold & Silver Market Report – 5/27/2014

Peter LaTona

5/27/2014 12:17:00 PM

GOLD PRICES HEAD FOR LOWEST CLOSE IN ALMOST THREE MONTHS

Gold prices began today’s trading session on the down side and the decline has only accelerated through morning trading. Analysts are looking at the technical charts and wondering if the bottom has fallen out. Gold has already plunged more than 1 percent today triggered by technical selling, Sunday’s Ukrainian election and a rising equity market. The “bottom has fallen out from under Gold” as “Ukraine concerns (and political risk premiums) fade following last weekend’s decisive election result,” Colin Cieszynski, senior analyst at CMC Markets, said in emailed comments Tuesday. Gold was testing “$1,275 [per ounce] channel support,” which could indicate if it is ready to move lower or bounce back, he added.

Stock prices have largely held on to morning gains. The stronger-than-expected economic data and a rise in consumer confidence sent the S&P 500 to new highs. The durable goods report rose 0.8 percent, beating the expectation of a decrease of 0.7 percent. The S&P/Case-Schiller composite index of home prices in 20 metropolitan areas beat expectations by 0.2 percent. Consumer confidence rose to 83, which was in line with expectations. “The big surprise so far this morning is that you didn't have more activity — there have been a lot of people that were short this market and for the S&P to make a record closing high, you'd have thought they'd break out a bit further," Art Cashin, director of floor operations at UBS Financial Services, said. "[The bulls] have the momentum back — they have a minor obstacle in the S&P in the area between 1,910 and 1,913 but if we push through that, then things should be alright."

At 1:15 p.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,267.10, Down $26.80.
• Silver, $19.12, Down $0.35.
• Platinum, $1,464.30, Down $9.50.
• Palladium, $832.30, Down $0.20.

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