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    JM Bullion Gold and Silver Market Update (5/17/13)

    Gold Spot Price Open: $1,386

    Gold Spot Price Close: $1,360

    Change in Gold Spot Price:-$26

    Silver Spot Price Open: $22.69

    Silver Spot Price Close: $23.29

    Change in Silver Spot Price:-$0.40

    Gold and silver posted losses for yet another day to close out the week on Friday, marking what has been one of the worst overall weeks since the monumental collapse we saw about a month ago. On the day gold was down about 26 dollars while silver fell roughly ten cents short of a half dollar.

    Once again the US Dollar performed well on Friday which was a bearish factor for gold and silver to say the least. All this week the story was the same, and every time we looked the US Dollar was getting stronger and stronger. The two main currencies that the USD is gaining against as of late have been the Japanese Yen and the Aussie Dollar. Going hand in hand with the falling Yen is that the Japanese Stock Market hit yet another 5 year high on Friday. This is a perfect example of a scenario where investors would currently rather be putting their money into stocks than they would in safe-haven assets such as gold and silver. With stock markets booming most investors see no need to protect their money and would rather make riskier moves in search of bigger returns.

    More validity is being given to the rumor that the Fed may end their Quantitative Easing measures in the near future as San Francisco’s Federal Reserve Bank President, John Williams, expressed that he is open to the winding down of the bond-buying program. If QE is brought to an end it will not so much be a sudden halt in bond buying as it will be a slow, steady winding down.

    If it is announced that QE is officially going to be brought to an end, and a timeline for the winding down is released, we expect that it will be a bearish factor for gold and silver. Stay tuned next week as it will be exciting and interesting to see what direction gold will head in.

    Disclaimer: All Market Updates are provided as a third party analysis and do not necessarily reflect the explicit views of JM Bullion Inc. and should not be construed as financial advice.

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