Friday’s Certified Gold Market Update Posted by Brian Ford on June 14, 2013
Certified gold coins either remained steady or gained a small amount of value on Friday, after the latest economic data to be released revealed that Federal Reserve chair Ben Bernanke will attempt to publicly quell fears that the current stimulus programs will be scaled back or suspended anytime soon. The consensus is that while gold could rise in the long-term due to the cessation of economic stimuli, the immediate effect could hinder growth in gold’s value.
Nevertheless, rumors that Bernanke will squash talks of ending the stimulus programs boosted gold $3.10 to $1389.90, just shy of the bull market’s next technical support level of $1400 per ounce. Additionally, the Commerce Department’s announcement that wholesale prices rose more than expected last month caused stock indices to fall while at the same time helping gold to battle a slightly stronger dollar.
Another factor that aided certified gold prices as well as gold bullion prices was the latest report on gold output. Instead of rising 0.1 percent from the month before as earlier predicted gold’s output remained flat and this sparked buying among institutional investors. Investment-grade coins such as Double Eagles and other pre-1933 U.S. coinage has not yet been updated by the Professional Coin Grading Service (www.PCGS.com) but large-volume exchanges such as the Certified Gold Exchange were reporting a $10-$25 rise in the value of common-date, one-ounce $20 gold coins. Be sure to visit the Certified Gold Exchange Daily Market Update page on Monday to learn what factors will influence certified gold coin prices next week.