Closing Gold & Silver Market Report – 5/29/2014

Ted Prince

5/29/2014 4:03:00 PM

STOCK MARKET MAY FACE CORRECTION; INVESTORS WEIGH ECONOMIC FIGURES

The Gold price remains under pressure Thursday as positive U.S. economic data, technical selling indicators and increased risk appetite cause the yellow metal to dip for the fourth straight session.  Gold began the short week with a significant drop following news that tensions in Ukraine were temporarily softened.  Safe-haven appeal has been the central elevating factor for Gold in 2014.  Though Gold is struggling to gain a solid footing, many analysts predict a significant stock market correction that could see equities fall as much as 20 percent, which could help Gold realize a significant rally as a safe haven. 

U.S. equities are trading higher for the fifth time in six sessions.  Investors shrugged off numbers showing a first-quarter GDP contraction and remain confident that the stock rally still has more to offer.  “No matter what that GDP number was, the underlying backdrop is that the data is improving,” Sam Turner, a fund manager with Riverfront Investment Group LLC, said. “We had two months there where small caps, higher momentum names really took it on the chin. Now they’re oversold and start to see some recovery.”  With unemployment numbers on the decline and corporate earnings figures continuing to impress, investors will continue to ponder how far the U.S. equity win streak can be prolonged. 

At 5 p.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,257.60, Down $4.10.
• Silver, $19.08, Down $0.04.
• Platinum, $1,461.70, Down $2.00.
• Palladium, $834.90, Down $5.90.

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