Closing Gold & Silver Market Report – 6/19/2014

Ted Prince

6/19/2014 4:00:00 PM

IRAQ CONCERNS, FED STATEMENT TRIGGERS TECHNICAL BUYING FOR GOLD

Following an uneventful stretch of price activity, Gold and Silver have both surged significantly higher today.   Tensions remain high in Iraq and statements by Fed Chairwoman Janet Yellen indicated low rates for the foreseeable future.  The impact on the U.S. dollar has been substantial as Gold has risen the most since last September.  Geopolitical crises have contributed to higher Gold prices this year and Brien Lundin, editor of Gold Newsletter believes, “the generally dovish interpretation of the Fed policy statement yesterday has also helped gold.”  The turmoil in Iraq and Fed statements yesterday pushed Gold toward technical levels that triggered a round of buying among electronically traded Gold helping lift the price over $45 today. 

With Gold making such a drastic single day movement, some professional investors such as George Gero, precious metals strategist at RBC Capital Markets, believe large investment entities will take notice and begin increasing positions in Gold.  “I don't think it's a one-day movement. I think such a sharp one-day movement is a signal. I think the institutions are making note of it. I think they've been underinvested," Gero said.  The Federal Reserve’s monthly summit ended yesterday with comments that proved bullish for some Gold investors.  Thursday’s market open saw a $500 million position taken giving the price an initial boost that has precipitated ongoing Gold futures buying throughout the day.  With a sudden onset of price volatility, investors will keep a watchful eye on Gold and Silver markets in the coming days. 

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

• Gold, $1,321.70, Up $47.00.
• Silver, $20.85, Up $1.02.
• Platinum, $1,474.60, Up $21.80.
• Palladium, $838.20, Up $15.60.

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