Mid-Day Gold & Silver Market Report – 6/23/2014

Peter LaTona

6/23/2014 11:51:00 AM

INFLATIONARY PRESSURES ARE BUILDING ACROSS THE GLOBE

According to recent research by JP Morgan, inflation is heating up in the U.S. and across the globe. JP Morgan’s global inflation index jumped to 2.6 percent in May. The core inflation index (eliminates food and energy) climbed to 2.1 percent. What was found surprising is that the inflation was not mainly due to food and energy prices.  It appears that companies around the globe have begun passing along their higher costs of doing business to the consumer. 

If you are a believer in Fed Chair Janet Yellen and the Federal Reserve, you are not worried about inflation. Although the Fed has pumped more than $3 trillion of cheap cash into the money supply, the current differences between short and long-term yields of U.S. government bonds indicate investors are not concerned. “The market is giving the Fed the benefit of the doubt that Yellen and crew have everything under control,” Robert Tipp, the chief investment strategist at Prudential Financial Inc.’s fixed-income unit, which oversees about $335 billion, said in a June 19 telephone interview from Newark, Jersey. “Inflation is not overheating even with job growth stable and the economy continuing to accelerate.”

At 1 p.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,320.60, Up $2.00.
• Silver, $20.96, Down $0.05.
• Platinum, $1,456.70, Down $2.60.
• Palladium, $822.70, Up $0.70.

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.