Mid-Day Gold & Silver Market Report – 1/29/2013
NEGATIVE U.S. CONSUMER CONFIDENCE LIFTS GOLD
Precious Metals prices are on the rise as pessimistic U.S. economic news was released today. Economists predicted consumer confidence would slightly drop to 64, but shockingly it fell to 58.6 in December. Consumer concern comes after U.S. politicians reached an agreement to avoid the fiscal cliff, which increased taxes for many Americans and left budget decisions to be handled at a later date. “The increase in the payroll tax has undoubtedly dampened consumers' spirits and it may take a while for confidence to rebound and consumers to recover from their initial paycheck shock,” Lynn Franco, director of economic indicators at The Conference Board, said in a statement.
The Federal Open Market Committee begins a two-day meeting today evaluating the U.S. economy and interest rates with a statement on future stimulus Wednesday. The Gold market is “buoyed by speculation that the Fed will continue with monetary stimulus,” analysts at ICICI Bank said in a note. Analysts suggest there is support for Gold as central banks continue to diversify reserve holdings. The market typically reacts before and after the Federal Reserve makes a statement regarding future stimulus actions and that is likely what we are seeing today. “Silver, like Gold, is moving higher due to short covering, bargain buying and perhaps a 'risk on' mentality prior to the next Fed announcement,” David Morgan of The Morgan Report said.
At 1 p.m. (EST), the APMEX Precious Metals spot prices were:
- Gold, $1,663.00, Up $8.10.
- Silver, $31.27, Up $0.45.
- Platinum, $1,679.30, Up $17.10.
- Palladium, $749.90, Up $8.40.
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