Closing Gold & Silver Market Report – 7/21/2014

Peter LaTona

7/21/2014 3:42:00 PM

EMERGING MARKETS MAY BOLSTER GOLD PRICES - WORST BEHIND US

According to a recent research note from BoA/Merrill Lynch, the worst may be over for the Gold market. "After the sharp correction in 2013, gold prices have stabilized this year. Looking at supply and demand dynamics, this was heavily influenced by reduced investor selling at the same time as physical offtake from emerging markets has been steady," BoA/ML analyst Michael Widmer said in the research paper. The price going forward will greatly be supported by buying in the emerging markets. "We believe that physical demand from emerging markets will gain further clout in the medium term as countries get more affluent, suggesting the worst may be behind the gold market," Widmer said.

Mohamed El-Erian warned on CNBC today that investors should be paying more attention to the uncertainty being created in Ukraine and on the Gaza strip. He warned that complacency has been rewarded because the Fed has been standing by the markets.  "But the problem is if you step back the process is getting worse. It involves nonstate actors, which means it's much harder to contain," El-Erian said. "Unlike the old days, there is no outside power that informs, influence, or impose outcomes."

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

• Gold, $1,313.90 Up $3.50
• Silver, $20.97 Up $0.09
• Platinum, $1,493.70 Up $2.80
• Palladium, $878.30 Down $4.20

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