Gold Firm As Second Quarter GDP Surprises To The Upside

  • Posted Wednesday, July 30, 2014 at 01:33 PM

Los Angeles CA, July 30 (Tangible Investments) - by James O’Dell -  Precious metals prices retreated modestly on Tuesday with Gold sliding $5.90 or 0.45 percent to close at $1,298.55 an ounce as investors await the Fed's policy statement at the end of the two day Federal Open Market Committee (FOMC) meeting later on Wednesday. The price of Silver eased $0.01 to close at $20.58 an ounce, while the Gold/Silver ratio, the measure of the number of Silver ounces needed to buy an ounce of Gold, fell to 63.10.
 
In its advance estimate of the second quarter U.S. gross domestic product (GDP) numbers, the Commerce Department said on Wednesday that GDP rose at a seasonally adjusted annual rate of 4 percent. The increase was a marked improvement from the first quarter, when the GDP fell by a revised 2.1 percent. The forecast was also well above consensus estimates that called for GDP to climb from between 3 and 3.2 percent.
 
Meanwhile, when asked what was driving the Gold price, and if there can be a sustainable bottom, Peter Boockvar of The Lindsey Group answered, "I think the most interesting sign of a sustainable bottom in Gold, from a bear market that is almost 3 years old, was the $41.40 spike higher the day after (Fed Chair Janet) Yellen's June press conference."
 
Boockvar continued that "It was the first time that a market, by way of its response, disagreed with the Fed's assessment on inflation and the state of employment…I think Gold bears were reminded by Yellen that while she may have to raise rates sooner than she wants to because of the trend in inflation and employment, she will be so slow in doing so in terms of pace, that real interest rates will remain very negative for a long time to come, and that is the key bullish factor for Gold," he added.

Preserve your wealth and secure your retirement by making a tangible investment in physical Gold and Silver in 2014. Call Toll Free 1.800.741.5014 and allow the friendly staff at Tangible Investments (learn about us here), owned and operated by world-renowned coin expert Silvano DiGenova, to assist you in your next purchase or sale. We hope you will share our site with your friends on Twitter and Facebook, but whatever you do, don't leave the site before claiming your Free Coin.

Get a Free Gold Investor's Guide
Metal BID ASK CHG$ CHG%
Gold 1201.80 1202.50 $0.20 0.02%
Silver 16.45 16.49 $0.00 0.00%
Platinum 1224.30 1227.30 $4.95 0.40%
Palladium 790.00 793.00 $1.00 0.13%
Are you sufficiently diversified? Our founder and president, Silvano DiGenova, explains why hard assets are essential to your portfolio. [Read more]
If you’re a collector of rare or beautiful items, you’re in the right place. We welcome you to visit the eBay store for Tangible Investments, America’s top buyer of rare coins! [Visit Now]
Get paid the most for your items from one of the nation’s most trusted firms. We buy bullion, coins, jewelry, watches, fine art, antiques, and collectibles. [Read More]