Mid-Day Gold & Silver Market Report – 5/30/2014
Peter LaTona
5/30/2014 11:37:00 AM
GOLD & SILVER HEAD FOR WORST WEEK SINCE MARCH
The Gold market received support over the past month from tensions in Ukraine. The public perception is that these tensions are easing (despite the loss of 64 lives this week) and this has helped drive Gold prices lower. Asia, who often picks up Gold purchases in declining markets, has not done so the past couple weeks. Buying has also slowed in India as investors are waiting on the repeal of the current harsh import taxes on Gold. "The move into riskier assets like equities, which have performed well, is weighing on gold," Peter Fertig, a consultant at Quantitative Commodity Research, said. "Furthermore, the market is not as worried about Ukraine as it has been in March and April. That's reducing support from that side for gold."
In April, U.S. consumer spending fell for the first time this year, but this decline is not expected to continue. After all, there have been two months of solid gains, so why shouldn’t April be viewed as an anomaly? "The disappointing spending report should be viewed in the context of a stronger handoff into the second quarter. In the coming months, we look for ongoing labor market progress to encourage further growth in consumer expenditure," Gennadiy Goldberg, an economist at TD Securities, said. At the same time that consumer demand decreased, inflation is sending out warning signs. Core prices are up 1.4 percent from a year ago, which is the biggest increase since March 2013.
At 12:50 p.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,247.20, Down $11.90.
- Silver, $18.72, Down $0.35.
- Platinum, $1,448.90, Down $12.20.
- Palladium, $832.20, Down $2.30.
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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
