Mixed bag of economic data keeping Gold in tight race

 

The gold price has remained steady at midday following the euro as gold continues to track currency markets. Ross Norman, chief executive officer of Sharps Pixley, commented on recent news of slowing gold demand by stating, “You’d think gold would subside, but it has performed well, responding to small optimism on euro gains and dollar weakness.” This positive sentiment comes amidst growing concern over short and long term inflation expectations. “We’ve had this mixed bag from the economic data,” said Ryan Detrick, senior technical strategist at Schaeffer’s Investment Research in Cincinnati, Ohio. “We are all just kind of wondering ‘Is this recovery real?”

The unremarkable movement in the gold price over the last few days has not been overshadowed by the sudden spike in platinum prices. News that the confrontation between police and South African miners at Lonmin PLC has escalated since yesterday is causing platinum to rise drastically for the second straight day. South Africa produces 75% of the world’s platinum and concern over its output could spur on further gains.

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

  • Gold, $1,616.00, Down $1.80.
  • Silver, $28.15, Down $0.17.
  • Platinum, $1,474.40, Up $38.20.
  • Palladium, $607.50, Up $22.60.

 

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