Closing Gold & Silver Market Report – 8/7/2014
Ted Prince
8/7/2014 3:58:00 PM
GOLD HIGHER, STOCKS RETREAT AS U.S. THREATENS FURTHER SANCTIONS ON PUTIN
The Gold price is trading higher for the second straight session as ongoing weakness among U.S. equities increased the safe-haven demand for Precious Metals. The retreat from stocks into Gold and Silver is partly influenced by escalating geopolitical tension surrounding Ukraine. As Russian forces mobilize near the border of Ukraine, the U.S. has threatened increased sanctions on Russia. The rise in crises in the Middle East and Ukraine has been the sole motivator of a higher Gold price this year. The yellow metal has risen 9.2 percent year-to-date while upbeat economic factors have done much to quell any significant upward momentum for Precious Metals.
U.S. stocks continue their descent on Thursday as the crisis in Ukraine continues to escalate, forcing many investors away from riskier assets. "Putin is still the big wild card in all of this," Chris Gaffney, senior market strategist at EverBank Wealth Management, said. "If tensions escalate, what does that do to the markets: It drives people to dollars, and into Treasuries for liquidity safe haven, and keeps a lid on interest rates here in the U.S.,” he added. The threat of military violence in certain sections of the world is always a cause of bearishness when it comes to equities markets. However, the rising tension that suppresses stocks lends to higher prices for Gold as nervous investors seek out the asset as a safe-haven against geopolitical uncertainty.
At 5:00 p.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,314.00 Up $5.80
- Silver, $20.00 Down $0.05
- Platinum, $1,481.00 Up $15.80
- Palladium, $857.80 Up $7.90
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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
