Daily Gold & Silver Market Report – 2/5/2015
Marcey Hollon
2/5/2015 12:08:00 PM
GOLD FALLS ON UNCERTAINTY; STOCKS RALLY ON OIL
Investors were left on the sidelines with uncertainty as the European Central Bank (ECB) said it will no longer accept Greek bonds for funding on Thursday. Gold fell almost one percent on the news and Athens, which is seeking debt relief from eurozone lenders, received a blow by the ECB’s announcement that lowered the euro against the dollar in early trading. In an effort to fight off an economic slowdown and add more liquidity, China cut the reserve requirements for banks, which may provide short term demand for Gold. While China and Europe continue to pour more money into their systems, the United States is moving toward a tightening cycle.
Ahead of Friday’s all important jobs report, U.S. stocks traded higher due to encouragement by oil gains as oil recovered to trade above $50 a barrel. “We have a habit of looking at crude as a barometer for global economic growth,” Wunderlich Securities chief market strategist Art Hogan said. Regressive analysis by his firm showed that for the last 25 years, the S&P 500 has only had a 0.03 correlation with crude. That correlation has jumped to 0.7 since crude began its decline last June.
At 1:08 p.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,264.50 Down $2.20
- Silver, $17.23 Down $0.23
- Platinum, $1,249.00 Up $10.10
- Palladium, $796.00 Up $4.80
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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
