Morning Gold & Silver Market Report – 6/20/2014

Peter LaTona

6/20/2014 8:01:00 AM

GOLD SURGES 3 PERCENT, SILVER UP AS MUCH AS 5 PERCENT

Gold had its best day in more than eight months Thursday as prices hit two month highs. Silver was also up as high as 5 percent. Rising prices were fueled by continued conflicts in the Middle East and the Federal Reserve’s indication that interest rates will remain low for a long time. "The Fed statement and geopolitical tensions sparked a frantic reversal in market sentiment. Investors are now bullish instead of bearish on Gold," RJ O’Brien senior commodities broker Phillip Streible said. Platinum and Palladium prices also shot up as South African mining strike negotiations broke down. Gold and Silver prices are holding on to gains in early morning trading.

Housing is considered to be a key indicator of U.S. economic recovery and the two-year-old housing recovery seems to be losing steam. Yesterday, the Mortgage Bankers Association lowered its 2014 new and existing home sales forecast by 4.1 percent. It also lowered its projection for mortgage lending volume by 8.7 percent. In short, home prices have been rapidly rising, but the number of high paying jobs has not. “The big housing rally wiped itself out because prices increased too quickly for buyers to keep up,” Global Hunter Securities LLC consumer strategist Richard Hastings said. “The pool of eligible new buyers is collapsing” due to stagnant incomes and an absence of credit. Hastings predicted the housing slowdown eight months ago.

At 9 a.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,315.50, Down $0.60.
• Silver, $20.81, Up $0.11.
• Platinum, $1,459.70, Down $16.80.
• Palladium, $826.80, Down $11.80.

APMEX’s Account Managers now have extended hours Mondays through Thursdays and are here to serve you until 8 p.m. (EDT)! Or call us Fridays until 6 p.m. (EDT)! If you have any questions about investing in Precious Metals or simply would prefer to place your order by telephone, we are here to help.