Mid-Day Gold & Silver Market Report – 3/6/2013
GOLD, SILVER RESPOND WELL TO JOBS REPORT
The Gold and Silver prices rose in morning trading even after positive news from a jobs report. Simon Weeks of ScotiaMocatta said, “We've clearly been in a period of sideways trading in the last few sessions and there are enough other bits and pieces going on to stop Gold selling off completely in the short term, but risk-on is very much the order of the day. Gold is going to be seen as a source of cash to fund the risk-on environment.” Also supporting the Gold price are central bank purchases. South Korea is the latest country to announce such a move, reporting a purchase of 20 tonnes of Gold in February.
With the ADP private sector employment report showing a gain of 198,000 jobs in February, many believe that the window of ultra-easy monetary policy from the U.S. Federal Reserve is closing. The Fed has previously stated, however, that quantitative easing will continue until the unemployment rate falls below 6.5 percent. Stocks traded higher after the news, with the Dow Jones Industrial Average adding to its record high hit yesterday.
At 1 p.m. (EST), the APMEX Precious Metals spot prices were:
- Gold, $1,576.70, Down $0.20.
- Silver, $28.81, Up $0.16.
- Platinum, $1,581.20, Down $6.50.
- Palladium, $740.50, Up $6.90.