Mid-Day Gold & Silver Market Report – 7/22/2014
Peter LaTona
7/22/2014 12:04:00 PM
GOLD & SILVER PRICES BOUNCE OFF LOWS AFTER CPI DATA RELEASED
The Consumer Price Index (CPI) was released this morning and confirmed market expectations that inflation was rising. Only food and energy prices rose less than market forecasts. Gold and Silver prices had fallen sharply prior to the release of CPI data. Core CPI (excluding food and energy) increased at an annualized rate of 1.9 percent. The U.S. stock market has also reacted favorably to the news as both the DIJA and NASDAQ are showing strong gains.
The falling euro dollar is one factor suppressing Gold prices. The euro fell to its lowest level against the dollar this year amid the growing concerns in Ukraine only to be exacerbated by the Malaysian plane crash. Tensions between Ukraine and Russian rebels continues to pressure the euro as expectations rise that tougher sanctions will be put on Russia. "Tougher economic sanctions on Russia would more than likely continue to entice investors towards selling the euro," said Jameel Ahmad, chief market analyst at FXTM. "The biggest loser from all of this in economic terms will surely be Russia herself," Julian Jessop, chief global economist at Capital Economics, said. "Even if sanctions are not tightened further and outright recession is avoided, growth will be held down by the growing reluctance of Western companies and banks to do business with what risks becoming a pariah state."
At 1 p.m. (ET) the APMEX Precious Metals spot prices were:
- Gold, $1,308.20 Down $6.60
- Silver,$21.02 Up $0.01
- Platinum, $1,488.20 Down $6.00
- Palladium, $875.60 Down $2.50
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APMEX Market Reports provide our readers with a review of spot price activity and some of the factors that may be affecting the market for Precious Metals. While the information is obtained from sources we believe to be reliable, we do not guarantee its accuracy or its completeness and we encourage you to conduct your own investigation prior to making any decision based on the information. The Market Reports are not intended as a comprehensive discussion and there may be other factors affecting the financial marketplace. These Market Reports are provided for informational purposes only and do not constitute a recommendation by APMEX to hold, purchase or sell any Precious Metal product. All orders, purchases and sales, if any, are subject to the terms of the User Agreement and other applicable policies
