Morning Gold & Silver Market Report – 5/6/2010
Peter LaTona
5/6/2011 8:19:00 AM
THE DAY AFTER A HUGE CORRECTION -We need to begin today’s news with the news that occurred yesterday. Commodity prices had a major correction across the board. Crude oil prices fell 8.6% and are now below $100 per barrel. Gold prices fell $42 per oz and have retreated below $1500.Growing concerns about the economic recovery drove the stock market down, as well as platinum and palladium, which both have strong industrial applications. Silver was the big story, as it retreated another $4, closing below $35, when only last week, it had almost touched $50 per oz.There are many opinions from “experts” as to what happened. On the one hand, there is the opinion that the commodity bubble has burst, so you should run for the hills because prices are going to retreat to two-year lows. Inflation is not going to happen and the global economy is gaining strength and momentum. On the other, this is but a correction, and prices will eventually begin moving forward again, because the need for safe haven investments is not going away. The same factors such as economic concerns, geopolitical tensions, currency fluctuations, dollar devaluations and inflation are every bit as much in play as they are today, as they were last week. Investor’s need to take a moment, breathe, and then come up with their own view of what the economic climate will be next year and the year after. How much of their investable assets should be in risks and what per cent age needs to be in safety? Many will take their cue from the Central Banks of the world, who are buying gold at a record pace.
The jobs report received a surprise to the upside this morning, as the non-farm payrolls rose 244,000. The expectations were that they would only rise 186,000. However, the jobless rate itself rose back up to 9.0%. Although early indicators are that equity markets will be enthusiastic on this news, there will be concerns that the overall rate went up. Precious metal prices are rising on the news as well.
At 8AM (CT) the APMEX precious metal prices were:
- Gold price - $1,495.00 (up $12.10)
- Silver price - $35.23 (down $1.08)
- Platinum price - $1,799.60 (up $20.40)
- Palladium price - $728.00 (up $15.20)
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
