Daily Gold & Silver Market Report – 5/5/2015

Lorrie Freeman

5/5/2015 5:03:00 PM

Economy On Decline; Gold’s Momentum Short-lived

According to a Moody’s/CNBC survey, economists believe the U.S. economy shrank by 0.3 percent in the first quarter. Tuesday’s weak trade data was included in this percentage. The government reported last week the economy grew 0.2 percent, but the Commerce Department will revise the figures later this month. “Q1 likely contracted, thanks largely to Mother Nature and the ports disruption. And, if imports continue to rise, there is downside risk to Q2,” the Bank of Montreal said in response to the survey.

Gold has turned positive for the year, creeping its way back to $1,200 per ounce. However, options trading expert Andrew Keene believes the increase will be short-lived. On CNBC’s “Trading Nation” Tuesday, Keene said Gold’s momentum remains with the bears, noting the 20-day moving average is close to crossing below its 50-day moving average, which is a sell signal for Keene and other traders. “This shows that short-term momentum is still on the side of the bears,” he said.

 

At 6:02 p.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,195.40. Down $1.00
• Silver, $16.61 Down $0.04
• Platinum, $1,147.50 Down $2.10
• Palladium, $796.40 Down $0.60