Mid-Day Gold & Silver Market Report – 8/25/2014

Peter LaTona

8/25/2014 12:01:00 PM

GOLD STAYS ABOVE $1275; S&P CLEARS 2000 FOR FIRST TIME

Gold and Silver prices are slightly lower, but considering this morning’s surge in stock prices, not as low as might be expected. The stock market is up triple digits and the S&P cleared 2000 for the first time ever. One veteran trader not impressed by the stock rally is Art Cashin, director of floor operations at the NYSE for UBS, "It was more psychological than technical," he said on CNBC. "You know, if it was a point that was technically important, the people who are short—and there are more than a few people short—would have said, 'Oh, my God. That's it. Let me capitulate and cover my short there.’" He was also concerned with the very low trading volume, saying, “Over the decades, I have been taught volume equals validity. Just as you wouldn't want the president of the United States picked by eight people, you want to see some real volume to get validity in there."

The stock market is behaving as if there is nothing but upside, yet Gold and Silver are holding on. This could have something to do with the continuing conflicts in Iraq, Ukraine and the Gaza Strip. Additionally, French President Francois Hollande requested Prime Minister Manuel Valls form a new government that will support his wish to continue along the path of austerity and budget cuts. In response, the prime minister instead handed in his government’s resignation.

At 1:00 p.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,279.80 Down $1.40
• Silver, $19.39 Down $0.04
• Platinum, $1,419.20 Up $0.70
• Palladium, $890.60 Up $2.00

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