CONSUMER SENTIMENT EASES GOLD; PRICE INCREASES EXPECTED LONG-TERM
Precious Metals were pushed down today as consumer sentiment reached its highest point in five years. Positive data regarding a decline in U.S. unemployment appears to have momentarily bested worries caused by recent fiscal policies - namely the Fed’s unlimited bond buying program. The University of Michigan- Thomson Reuters sentiment gauge, a tool economists use to get a feel for the future course of consumer spending, reached a level of 83.1 in an early October reading. This number is just shy of the average 87 posted in the year prior to the greatest economic downturn since the Great Depression.
Though Gold fell today, open ended fiscal policies engaged in by central banks are expected to boost prices in the long run. Credit Suisse forecast an average price of $1,840 per ounce for the year 2013. HSBC’s James Steel stated that he does not predict Gold to fall below $1,750 per ounce. Historically, price pullbacks such as this have presented excellent buying opportunities for investors.
At 1 p.m. (EDT), the APMEX Precious Metals spot prices were:
- Gold, $1760.90, Down $9.20.
- Silver, $33.75, Down $0.33.
- Platinum, $1659.90, Down $27.60.
- Palladium, $640.40, Down $11.60.
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