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Gold And Silver Jump On GDP Decline

Release Date: 
Wednesday, January 30, 2013

Gold and silver prices rose significantly in morning trading on the New York Spot Market following news that the U.S. GDP declined in the fourth quarter, the first decline in three years.  The precious metals were also bolstered by a lower U.S. dollar index and higher oil prices.

A technical analyst at GFT Markets wrote, “[i]nvestors rushed to buy gold and silver [on the GDP data] … The metals were already looking bullish anyway following yesterday’s technical bounce, but today’s reaction has nevertheless confirmed that investors still see gold and silver, above all, as safe haven assets….”

As of 7:33 a.m. Pacific Time, gold prices were up $18.60 to $1683.50 on the New York Spot Market. Silver rose more than 2% to $32.18.

(Sources: “Gold rises after drop in GDP and ahead of Fed,” MarketWatch, January 30, 2013; “A.M. Kitco Metals Roundup: Gold Pops Higher Following U.S. GDP Contraction; FOMC Awaited,” Kitco, January 30, 2013.) 

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†This material has been prepared for private use. Although the information in this commentary has been obtained from sources believed to be reliable, Goldline does not guarantee its accuracy and such information may be incomplete or condensed. The opinions expressed are subject to change without notice.

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