Closing Gold & Silver Market Report – 6/9/2014

Ted Prince

6/9/2014 4:01:00 PM

GOLD STEADY AS STOCKS CONTIUE RALLY

Precious Metals prices are holding firm today as waning investor confidence in the euro zone helped buoy Gold and Silver as a safe-haven.  “Worries about Europe are bringing in some safe-haven buying,” Fain Shaffer, the president of Infinity Trading Corp., said. Prices will “remain range-bound as the rally in the equity market will continue to overshadow everything else.”  Though trading volume is 64 percent below average over the past 100 days, holdings in Gold exchange-traded funds are the lowest since 2009 and short positions for Silver-backed products are at their highest levels since 2006.  Due to the ongoing stock rally and abundance of upbeat economic data, traders are betting on lower Precious Metals prices in the short-term.  However, ongoing Fed stimulus measures and uncertainty surrounding the economic strength of the euro zone could force metals prices higher in the long-term. 

U.S. stocks continue their impressive rally as the S&P 500 advanced to realize its seventh record close in the last eight sessions.  With benchmark indexes continuing to climb, some analysts remain incredulous as to whether the current winning streak among equities can be sustained.  “There’s a fair amount of skepticism over if we are at peak valuations,” Michael Arone, chief investment strategist at State Street Global Advisors’ U.S. Intermediary Business, said.  Looming concerns that a stock correction is around the corner continue to pervade market gossip.  A reversal of recent gains among equity shares could cause Gold and Silver to break free from their current range and move higher to offset any significant dip in the stock market. 

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

• Gold, $1,254.40, Down $0.10.
• Silver, $19.12, Up $0.06.
• Platinum, $1,455.00, Up $1.00.
• Palladium, $842.00, Down $2.20.

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